Taxing agriculture income: Understanding with provinces reached, claims Aurangzeb

ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Thursday that the size of the new International Monetary Fund (IMF) Extended Fund Facility (EFF) would be decided in a week’s time.

While replying to the questions of media after the meeting of the National Assembly Standing Committee on Finance, Aurangzeb said Pakistan would request the IMF, at a later stage, for augmentation of the EFF through Resilience and Sustainability Facility (RSF).

The minister said that so far EFF between $6-8 billion is being discussed, however, the exact amount has not yet been finalised.

Taxes: Aurangzeb for breaking IMF bailout cycle

He said almost all the prior actions of the IMF have been fulfilled for the next programme and an agreement would be reached, hopefully, in the current month. He also claimed that in-principle an understanding with the provinces has been reached with regard to tax agriculture income.

Earlier, the finance minister told finance committee meeting that economic indicators have improved in the last fiscal year and inflation has decreased.

In response to a question of the committee member, he said now there is no restriction on imports.

He added that target is to increase tax-to-GDP to 13 percent as no country can survive with a 9 percent tax-to-GDP ratio. He said he was grateful to the provincial finance ministers for in-principle agreeing on agricultural income tax.

Aurangzeb said everyone has to be taxed and make a filer as the IMF wants all incomes to be taxed and promised to improve public confidence in FBR. He said additional refunds of Rs60 billion issued last financial year.

The finance minister said interest payments and government expenses are major expenditure. He said that public-private partnership will be promoted on development budget.

He said negotiations with the IMF are progressing positively and an agreement with the IMF will be reached this month.

Copyright Business Recorder, 2024