Govt to likely withdraw Rs 750 bln tax exemptions under agreement with IMF

Govt to likely withdraw Rs 750 bln tax exemptions under agreement with IMF
Islamabad: Federal government is reportedly mulling over withdrawing tax exemptions amounting to Rs750 bln, GNN News has learned.

Under the potential agreement with International Monetary Fund (IMF), government has also agreed to raise tariffs of electricity and gas. Also, National Electric Power Regulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA) will be made autonomous bodies.

The government has also agreed to shift additional burden of Rs340 billion on electricity and power consumers.

It has also been learnt that Pakistan would likely ink an agreement with IMF for a bailout package worth USD 7-8 billion.

Pakistani delegation and IMF have also agreed on that former would hike costs of electricity and gas for the consumers in the next budget.

The government has also agreed to end electricity subsidy for all consumers apart from the one offered to small consumers.

In the industrial sector, government will offer ‘limited subsidy’ to exporters only.