Islamabad: The International Monetary Fund (IMF) has advised the Federal Board of Revenue (FBR) to eliminate the special tax regime for the construction sector and integrate it into the standard income tax framework, as claimed in a news source on March 15.
According to the details, this recommendation came during discussions between the IMF team and FBR officials regarding the second review of the Stand-by Arrangement (SBA). The IMF also proposed abolishing the FBR’s discretionary power to grant tax incentives and suggested that any future incentives be time-bound and subject to cost-benefit analysis.
Additionally, the IMF recommended reviewing and potentially adjusting eligibility criteria for tax credits related to charitable donations and certain individuals. It also urged the expansion of the National Tax Council’s role to include the harmonisation of tax rates and the enforcement of provincial tax laws. Furthermore, the IMF suggested the establishment of a Tax Policy Unit within the Ministry of Finance, Revenue, and Economic Affairs, along with protocols for data exchange between the FBR and other agencies.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
