Rs215bn new tax on the cards to meet IMF demand: Dar

ISLAMABAD:  Finance Minister Ishaq Dar has said that new taxes worth Rs215 billion were being levied to strike a deal with the International Monetary Fund (IMF).

Speaking on the floor of the National Assembly (NA) on Saturday, Dar claimed that the new taxes will not burden the comman man and low-income groups.

He said that the IMF had proposed to double taxes on the salaried class, which was outrageous.

Dar further said that the government has agreed to slash expenditures by Rs85 billion to clinch a deal with the IMF but the government will not compromise on development budget, salaries of government employees and pensioners.

He said that the super tax has been spiked from Rs300 million to Rs500 million.

Dar said that non-filers will be subject to a 0.6 per cent tax on cash withdrawal, whereas proposed tax to the tune of Rs2,000 on old electric fans has been deferred for six months.

“Once the agreement with the IMF is finalised, it will be published on the ministry of finance’s website,” he added.

The finance minister announced that the government has planned to broaden the tax base in order to lessen the burden on a few hundred thousand taxpayers.

He said that Rs466 billion has been allocated for the Prime Minister’s Income Support Programme and Rs30 billion subsidy has been set aside for utility stores outlets.