IMF satisfied with federal govt, provinces over economic performance
Business
IMF asks provinces to impose income tax on agricultural income in next budget
ISLAMABAD (Mudassar Ali Rana) – The International Monetary Fund (IMF) on Saturday expressed satisfaction with the economic performance of the federal and provincial governments following virtual negotiations with provincial authorities.
According to sources, the IMF delegation demanded that provinces should impose income tax on agricultural income in the upcoming budget while asking the provinces to generate funds on their own for development projects.
Provincial governments, including those of Khyber Pakhtunkhwa and Balochistan, were told that there will be no exemptions on collecting income tax on agricultural income in the new budget.
Read more: FBR sets ambitious Rs14,305bn tax target for upcoming fiscal year
Provinces should end their dependence on the federal government for expenditures related to development projects.
Sources further said that the IMF was satisfied with the economic performance of both the federal and provincial governments.
Besides, the provinces have assured the IMF of a surplus in the next fiscal year.
It is worth noting that the IMF delegation will arrive in Pakistan tomorrow for budget-related negotiations. The delegation will hold discussions with officials from the Ministry of Finance, Planning Commission, FBR, and the State Bank.
