ISLAMABAD – The Prime Minister turned down two important tax proposals of the Federal Board of Revenue (FBR) for the upcoming fiscal year’s budget, the sources privy to the development said on Saturday
The sources said that the FBR had proposed to increase the sales tax on various items from 18 to 19 percent while suggesting to levy tax up to 18 percent on petroleum products.
The Federal Board of Revenue (FBR) had planned to collect billions of rupees in taxes from both tax proposals.
Prime Minister Shehbaz Sharif has turned down the FBR’s proposals and directed the Chairman of the Federal Board of Revenue to prepare alternative proposals.
It is reported that the IMF had suggested Pakistan to impose sales tax on petroleum products in the recent negotiations.
It may be mentioned here that the government suspended the sales tax on petroleum products since March 2022, and instead of sales tax, the federal government is charging Petroleum Development Levy at Rs60 per liter on petroleum products.
