The International Monetary Fund (IMF) has urged Pakistan to raise the general sales tax rate from 18 per cent to 19 per cent.
Negotiations between Pakistan and the IMF on the 2026–27 federal budget have entered their final stage. A proposal has been placed to increase the size of the next budget from 15.1 trillion rupees to 15.5 trillion.
According to sources, around Rs220 billion in fresh taxes may be introduced. A fixed tax scheme for traders is under consideration, under which annual sales of Rs200 million would attract a fixed tax of Rs25,000, with exemption from audit also proposed.
The proposal to raise GST from 18 per cent to 19 per cent remains under discussion. A reduction of one to two per cent in the super tax has also been proposed.
Changes to tax slabs for the salaried class are under review, with possible adjustment in the threshold of the highest slab. Further consultations with the IMF and approval from the federal cabinet are expected to determine any relief measures.
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