The Pakistani government has committed to increasing taxes by around $8.3 billion in the coming budget, reported Dawn
The Pakistani government has committed to increasing taxes by around $8.3 billion in the coming budget, reported Dawn. An undertaking by the government revealed that the government is set to hike taxes in exchange for the revived bailout package from the global lender.
The electricity rates are expected to increase by almost PKR 4.97 per unit in the coming days. The report says that the government has also agreed to adjust power tariff rates on a monthly, quarterly, and annual basis.
Laws would be amended to free the power regulators from government control.
Authorities would continue increasing the petroleum levy on oil products to the maximum level (PKR 30 per litre) this year and next year, to collect about $ 3.3 billion this year instead of the budgeted target of $2.9 billion. The next year's target from the petroleum levy was set at $3.9 billion.
The government also committed to raising around $3.2 billion through a general sale tax increase. Gas prices would be adjusted and no exemptions, and amnesty would be considered in the future, the documents revealed.
The IMF, however, said the government has already completed five prior actions that were needed to revive the IMF funding program for the country.