PM discards FBR’s two tax proposals for budget

Islamabad: Prime Minister Shehbaz Sharif Saturday rejected two important tax proposals of the Federal Board of Revenue (FBR) for the budget of the next financial year, GNN reported.

According to the details, the FBR had proposed to levy sales tax on various items at 18 to 19 percent and on petroleum products up to 18 percent.

The Federal Board of Revenue (FBR) had planned to collect billions of rupees from the two tax proposals.

Prime Minister Shehbaz Sharif rejected the FBR proposals and directed the Chairman Federal Board of Revenue to prepare alternative proposals.

The IMF had proposed to Pakistan to impose sales tax on petroleum products in the recent negotiations.

It is pertinent to note that the government has suspended the sales tax on petroleum products from March 2022. The federal government is already charging petroleum development levy of Rs60 per liter on petroleum products instead of sales tax.