IMF Rejects Pakistan’s Proposal to Abolish 4% Sales Tax on Unregistered Persons
During a Senate Finance Committee session chaired by PPP Senator Saleem Mandviwalla, the IMF firmly declined Pakistan’s request to remove the additional 4% sales tax on unregistered individuals. Instead, it urged the Federal Board of Revenue (FBR) to expand the tax net by 50,000 people and link any relief to a 25% rise in the sales tax base. Critics argue the current system penalizes consumers while letting businesses sidestep formal registration.
The government now faces the challenge of balancing tax enforcement with business concerns and public trust.
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