KARACHI: Chairman Federal Board of Revenue (FBR) Tariq Bajwa has left for Dubai on Friday to attend the meeting with IMF, Member Customs Nisar Mohammad Khan is already in Dubai for this purpose. The meeting is being held for policy level talks between Pakistan and IMF.
IMF role has always been very important in Pakistan’s economy. Through structural adjustments, loans, specific agendas and multiple suggestions and advices, IMF is greatly involved in improving Pakistan economic condition apart from the fact that Pakistan’s real economic growth and development lies in its self-sufficient position without any external help.
The current meeting of FBR authorities with IMF is in continuation of the previous so many meetings held to discuss issues of expansion of tax base, improving Tax to GD ratio, maximization of revenues and tax reforms etc.
In this meeting, FBR will apprise IMF about growth in revenue collection for the year 2014-2015 and inform them about their strategy and efforts in this regard.
It will include review of $6.64 billion extended fund facility (EFF) programme. Focal point, however, will be discussion on revenue generation. FBR will inform IMF that Pakistan’s economy is showing signs of improved activity.
Another important point on the agenda is to discuss and examine possibility of replacing Single Staged Sales Tax (SSST) with existing standard rate of 17 percent sales tax.
FBR will seek guidance from IMF regarding crucial tax reforms of indirect taxes and cooperation in some key tax areas particularly General Sales Tax (GST) structure.
It is hoped that IMF will greatly improve comprehension of FBR on these issues and provide guidance for future strategic decisions.