IMF calls for tax on pensions

Web Desk: The International Monetary Fund (IMF) has asked Pakistan to withdraw tax exemptions on various pensions, including taxation on pensions of retired persons from civil and military institutions.
The IMF delegation quietly arrived in Islamabad yesterday where they will hold talks with the government of Pakistan regarding the loan.
The IMF has demanded that Pakistan collect additional taxes of half a percent (0.5%) of the Gross National Product, amounting to Rs 600 billion, and this tax will be collected from the salaried and business class.
Following the IMF proposal, if the government taxed the pensions of retirees and eliminated other incentives, it would generate an additional Rs 22 to 25 billion annually, the IMF and the government of Pakistan said today. Negotiations will start from and according to the sources, 2 different bailout packages will be discussed in these negotiations.
Head of Mission of IMF Pakistan will visit Pakistan next week.
Pakistan is seeking two different loans, one for infrastructure reforms and the other for tackling climate change.
Two days ago, Finance Minister Muhammad Aurangzeb said that the volume and duration of the new loan from the IMF have not yet been finalized, but it will be finalized soon.
Government sources say that this will be the 24th IMF program for Pakistan, which is being called the most difficult loan program ever.