ISLAMABAD (Kashmir English): The International Monetary Fund (IMF) has reportedly decided to pull back from imposing the proposed taxes on solar panels and stationery goods on account of the government’s request.
According to media reports, the government has succeeded in convincing the IMF not to impose the proposed sales tax of 18% on solar panels, which means that there will be no change in the current tax rate of 10%.
The IMF seems to have made a decision regarding the removal of the proposed 18% sales tax on stationery goods as well, which means some relief for students and parents.
There does not seem to be any major change in taxation policy on the stock market and tobacco products. The discussion on taxation of the real estate sector is also inconclusive.
However, the talks on different budget proposals continue to take place between the government and the IMF.
The government also plans to introduce a Rs60 billion relief package for employees.
Taxation proposals include increasing the threshold of taxable income from Rs4.1 million to Rs7 million and also doing away with the 10% surcharge on those who earn more.
It seems that the income brackets of those earning Rs600,000 and Rs1.2 million annually will not see any change.
Apart from this, the budget would probably have a provision for giving some relief in order to encourage exports, as one such proposal is that the 1% export tax will be done away with.
