IMF Requests FBR to Remove Special Tax for Construction Industry

Islamabad: As per the latest updates, the International Monetary Fund (IMF) has requested the Federal Board of Revenue (FBR) to remove special tax for the construction industry and go for the regular income tax regime.

IMF Requests FBR to Remove Special Tax for Construction Industry

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As per the sources, these tax-related matters were discussed in a meeting between IMF and FBR officials about the second Stand-by-Agreement (SBA) review. Moreover, the IMF has also proposed eradicating FBR`s discretionary powers in order to implement tax incentives.

On the other hand, the IMF has also demanded that FBR consider the cost-to-benefit analysis and make sure to keep the benefits limited to a specific period. Furthermore, the IMF also asked that the eligibility needs for the tax credits relating to specific people and charitable donations must be examined and adjusted well.

In addition, it also requests that the National Tax Council’s authority be expanded to impose provisional tax rules and standardize tax rates. Additionally, the IMF further recommended the formation of a Tax Policy Unit under the Ministry of Finance, Revenue, and Economic Affairs, as well as the protocols for the exchange of data between the FBR and other organizations.

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