ISLAMABAD: The government may impose new tariffs worth around Rs 200 billion in February to break the impasse with the IMF, but political uncertainty is delaying final decisions.
The World Organization has said that the steps promised to remove the revenue gap of 220 billion rupees in the first half of the current financial year (July to December) should be implemented.
Finance Minister Ishaq Dar has started consultations on the new budget proposals, in which the hike in electricity rates is also being discussed. Earlier, the government had planned to tax only imports and commercial banks to raise around PRs 80 billion for flood relief. However, government sources say that the list has been further extended, and now the rate of capital value tax on imported and locally assembled vehicles, beverages, and petroleum products is to be increased substantially.
Due to the sharp decline in revenues, Finance Minister Ishaq Dar last week said the government would stick to the FBR's annual tax target of PRs 7,470 billion, without additional revenue measures of at least PRs 200 billion.
Sources said that the IMF has estimated a shortfall of PRs 420 billion, but the FBR has claimed that it will face a shortfall of Rs 170 billion to 180 billion.
Publisher: Hamza Rajput
Designer: Umer
