- The IMF is looking for details To collectively increase corporate tax income.
- The lender also wants Information on NTC’s reference conditions.
- Wants to collect income under Common approach to land tax.
Islamabad: In the midst of the possibility of granting a derogation from the delay of the provinces in the collection of agricultural income tax (AIT), the review mission of the International Monetary Fund (IMF) asked details from the provincial authorities on income on their preparation for collection has from July 1, 2025, The news reported Thursday.
The visiting IMF team also asked the provinces to convert the TPS collection on the services of a positive list to a negative list of the next fiscal 2025-26.
Development comes when a IMF team led by the head of mission in Pakistan Nathan Porter is currently in Pakistan for the first examination of the extent of 7 billion dollars (EFF) guaranteed by the country last year.
If the IMF approves the first loan exam, the country is online to receive around 1 billion dollars as the second episode of the loan package. The IMF journal is closely monitored by investors as a sign of progress in economic reforms.
The Mission of the Visit Visit and the four provinces analyzed the performance of the National Tax Pact (PNF) signed among the center and the four provinces under the conditionalities of the lender.
“The IMF seemed to be indulgent on the delay in the collection of the AIT as an clonent in collaboration with the World Bank was recently organized in Islamabad where the bank had the mandate to prepare a future roadmap for the collection of AI from the next fiscal year, with effect of July 1, 2025,” confirmed official publication sources.
Meanwhile, the provinces informed the lender based in Washington that the conversion of TPS on the services of a positive list to a negative list would be implemented as agreed to the National Tax Council (NTC), but the provinces should request the approval of their respective cabinets and provincial legislative assemblies which would be subject to the next budget for 2025-26.
In addition, the IMF also looked for details to collectively increase income on agricultural companies and TPS on services, combined with provincial tax efforts to expand additional income.
The lender also asked to develop, implement and receive income under a common approach to land taxation, to implement the administrative reforms necessary to reduce the tax conformity difference, including TPS.
He also asked for details on the reference conditions of the NTC which will be extended to include the design of relevant tax measures, including land tax and the legal and administrative modifications necessary to implement them.
Renowned economist Dr. Hafiz a Pasha estimated that AIT potential for all provinces amounted to 880 billion rupees. In his latest research document, Dr. Hafiz A Pasha says that the provincial / GDV ratio of the four combined provinces is very low at 0.7% of GDP. The Sindh has the highest tax / GRP ratio of 1.2%, while the lowest ratio is that of Khyber-Pakhtunkhwa at less than 0.4%.