Pakistan Economic Crisis: Pakistan’s economic condition is bad and inflation is at its peak. Pakistan is not getting any relief from the burden of debt. In such a situation, Pakistan has received a big shock from the International Monetary Fund. Where Pakistan’s talks with the IMF regarding the loan ended without any result. There was no agreement on income tax rates and tax on prices of agriculture and health sector, after which the IMF also stopped the talks.
Inflation in Pakistan is at its peak. In such a situation, the Pakistan government is considering levying 45 percent tax on monthly income of more than Rs 4.67 lakh from salaried and non-salaried taxpayers. However, at present, a tax of 35 percent is applicable on monthly income of more than Rs 5 lakh in Pakistan.
IMF is forcing Pakistan to accept every condition for loan
It is believed that the way the International Monetary Fund wants to impose its conditions in Pakistan. In such a situation, if the Pakistani government implements them, then it will have a direct impact on the people of the country, due to which the government may have to face the anger of the people. Because, the IMF is putting pressure on Pakistan to increase tax on exporters in the next budget. To which the Shahbaz government has agreed.
This year, exporters have paid Rs 86 billion which is 280 percent less than the tax on salaried employees. However, the Pakistani government has expressed its desire to impose tax on pensions as well before the IMF.
Know on which issues consensus was reached?
The IMF has put a condition before the Shahbaz government to merge the slabs related to salaried, non-salaried and other incomes into one. However, the Pakistan government has proposed to increase the annual limit of income tax by Rs 9 lakh, on which the IMF has demanded to increase the maximum income tax rate from 35 to 45 percent. At present, the Shahbaz government is not ready to accept this condition of the IMF. But, it has asked to keep the income tax at the current rate of Rs 6 lakh.
Pakistan is facing a serious economic crisis
In fact, to comply with the conditions of the IMF, the Shahbaz government is ready to increase the tax rate for non-salaried people to 45 percent, but it is demanding to keep salaried employees out of this slab. However, the Pak government says that non-salaried businessmen pay tax except for expenses, while salaried taxpayers pay tax on all their income. On which Pakistan’s Prime Minister Shahbaz Sharif is not yet ready to increase the tax burden on salaried employees.