Achi news desk-
The International Monetary Fund (IMF) has asked Pakistan to tax civilian and military pensioners and remove income tax exemptions from various pension schemes.
The IMF’s call to tax retirees and retirees could potentially generate up to Rs. 25 billion annual additional income tax, provided that all tax exemptions on pension funds are withdrawn.
An IMF team is in Islamabad to discuss a new loan program with Pakistan. Islamabad is pursuing two separate loan programs, the Expanded Fund Facility (EFF) for structural reforms and the Resilience and Sustainability Facility (RSF) to address challenges related to climate change.
Read more: IMF aid team arrives in Pakistan for next long-term loan programme
Proposed measures including taxing pensions and gratuities, ending the income tax credit for voluntary payments, and revising the income tax and pension systems for sole proprietors as revenue-raisers are considered. However, they may put more pressure on the country’s fixed income population.
The IMF also wants higher taxes on pension funds, contributions, and income from pension funds regulated by the Securities and Exchange Commission of Pakistan (SECP).
