ISLAMABAD: According to the letter of intent sent by the government of Pakistan to the IMF, the sales tax on petroleum products and the tax exemption of the agricultural sector are likely to end.
According to the letter of intent, 10.5 percent sales tax will be imposed on petroleum products from October, after which the price of petroleum is likely to increase by Rs. If the tax targets are reduced, sales tax exemptions for the agricultural sector will be removed, while the IMF has been assured that sales tax exemptions on agricultural drugs, fertilizers and tractors will be removed.
150 billion rupees revenue can be obtained by abolishing agricultural tax exemption. More additional taxes will be imposed on Tier 1 and Tier 2 cigarettes, taxes on sugary drinks are likely to fetch up to 60 billion rupees. If the targets are not achieved in the first quarter of this financial year, measures will be taken from October.
