The World Bank has recommended that Pakistan revise the National Finance Commission (NFC) Award formula to improve fiscal federalism, strengthen revenue collection and ensure a more equitable distribution of resources among the provinces. The recommendations were presented in the World Bank’s report, Strengthening Fiscal Federalism in Pakistan, launched by lead economist Tobias Haque and Country […]
GST
Tax relief proposals await IMF approval before FY27 budget
The federal government is awaiting approval from the International Monetary Fund (IMF) for a package of tax relief measures ahead of the 2026-27 budget, while simultaneously negotiating new revenue-generating proposals to meet ambitious tax collection targets. Read More: Budget 2026 sees tax reform proposals According to officials, the proposed relief package includes reductions in income tax slabs for […]
IMF blocks immediate removal of GST on contraceptives
ISLAMABAD: Despite Pakistan facing one of the highest population growth rates in the world, the International Monetary Fund (IMF) has refused to allow the immediate abolition of the 18% General Sales Tax (GST) on contraceptives, a move that has stalled government efforts to make birth control products affordable. As a result, condoms and other contraceptives […]
Fruit growers see 10% FED on juices resulting in lower fruit procurement
A double whammy for the juice industry threatens fruit farmers’ livelihoods In the much criticized mini-budget that the Finance Minister presented on Wednesday, the government delivered a double whammy for the juice industry, by not just increasing the GST to 18% but also proposing a 10% FED. The Senate Standing Committee on Finance and Revenue […]
Devising a rational tax policy
There is a national consensus that existing tax policy needs to be reformulated to provide an equitable, pragmatic, investment-oriented and business-friendly tax system, integrating good tax administration with simplified tax laws that are easily understood and hassle-free from the implementation perspective. Efforts of the government in the past to reform the tax system through special […]
Changing FBR head is easier for PM Imran than fixing FBR? Part – I
A couple of months before the PM fired the FBR Chairman, he had threatened his own machinery, which collects more than 96% of the Federal Revenue with disbandment and replacement. The wizard of Kaptanistan with apology to Late Bhutto was screaming “So what, if the FBR fails in collecting revenues, so what if the whole […]