ISLAMABAD: The Pakistan Tehreek e Insaf (PTI) government has made a commitment of hiking taxes by a whopping 1.272 trillion rupees to the International Monetary Fund (IMF).
Electricity prices will be increased by almost 4.97 rupees per unit while a maximum level of 30 rupees per litre can be imposed on oil products as a petroleum levy.
The tax hike is almost 2.8% of Pakistan’s GDP.
Under the agreement with the IMF, the PTI government has pledged to bring down the current year’s development programme to 1.169 trillion rupees against budgeted target of 1.324 trillion rupees.
The PTI government has also given a commitment to make adjustments in gas tariffs and not to consider any tax exemption or tax amnesty in future. Also, the IMF made it part of the programme conditions to have detailed audit of the funds allocated for combating Covid-19, including contracts and beneficial ownership of bidding results, including medical supplies.