Pakistan and IMF fail to agree on income tax rates and sales tax, stalling $6bn bailout negotiations.
Pakistan and the International Monetary Fund (IMF) have failed to reach a consensus on new income tax rates for salaried and non-salaried individuals, as well as a proposed 18% sales tax on agriculture and health sector goods. The IMF has insisted on merging income tax slabs for salaried, non-salaried, and other incomes, while Pakistan is unwilling to increase the maximum rate for salaried individuals to 45%. The disagreements have led to a stalemate in ongoing negotiations crucial for Pakistan to obtain a $6 billion bailout package from the IMF.
June 09, 2024
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