- The IMF has reportedly asked Pakistan to raise the standard GST rate from 18% to 19% in the 2026-27 budget, but Pakistani authorities oppose it due to inflation concerns.
- The move is linked to a tax collection shortfall, and could raise about Rs250-300 billion; the IMF expects inflation around 8.4% next year.
- The IMF has also proposed higher GST on hybrid vehicles, while talks on electric vehicle taxation are still ongoing.
- For retailers, the IMF supports a fixed tax scheme for smaller businesses, along with limited audit exemptions and QR code certification.
- FBR Chairman Rashid Mahmood Langrial denied that any GST increase proposal was being considered, saying no such plan is under discussion.
Source: pakistantoday.com.pk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Pakistan"
- IMF Seeks GST Hike to 19% in Pakistan Ahead of 2026-27 Budget
- IMF Seeks 1% GST Hike to 19%, Pakistan Resists Over Inflation Fears
- IMF Pushes for 19% GST in Budget; Pakistan Resists Citing Inflation Fears
- IMF Pressures Pakistan to Remove All Sales Tax Exemptions in Upcoming Budget Talks
- Real-time reporting and FBR approval for corrections
