Federal cabinet on Tuesday approved new taxes of Rs 14 million to meet the conditions of the IMF, which will come into effect from July this year. In a meeting chaired by the Prime Minister, the Income Tax Act was amended by the State Bank of Pakistan. 1.4 trillion will be raised separately from the abolition of tax exemptions approved by Stand Enterprise.
IMF has withheld a 6 billion loan program to Pakistan to enforce its terms. These two demands have also been met. The Board of Revenue has approved the abolition of similar tax exemptions. New taxes of Rs. 140 billion will be imposed.
Now the FBR official circles say that the Board would be able to achieve its desired tax collection target for the current fiscal year. The FBR was taking all required measures and database would be utilized to bring potential income earners into tax net.