Commercial imports: IMF disapproves of increase in tax rate

Government decides to increase the tax on commercial imports in a bid to boost tax revenues.

ISLAMABAD:

The International Monetary Fund (IMF) has rejected the government’s plan to increase the tax rate levied on commercial imports.

Speaking to The Express Tribune, a senior official from the Federal Board of Revenue informed that the government had decided to increase the tax on commercial imports in a bid to boost tax revenues.

IMF has asked authorities to approach the World Trade Organisation (WTO) and seek approval for increasing the tax rate from four per cent to six per cent. The Fund has stressed that any increase should be implemented in accordance with the WTO charter.

According to the official, the decision will cost the national exchequer around Rs10 billion.

Published in The Express Tribune, April 29^th, 2011.