Govt implements revenue measures from Feb 15 to secure $1.2bn IMF tranche early

In light of an unexpected relief in tax measures from the International Monetary Fund, the government has decided to take a proactive approach and implement tax and non-tax measures from Feb 15 instead of March 1 — the purported deadline proposed by the global lender — to secure quick release of $1.2 billion tranche. Ahead of the start of much-delayed talks, the government was expecting that the IMF would ask for approximately Rs400 billion in tax and non-tax measures, but as policy-level talks came to a close both sides agreed on Rs170bn collection from tax and non-tax measures in the next four and a half months. Official sources privy to talks told Dawn that the Federal Board of Revenue (FBR) has already drafted two ordinances to impose Rs100 billion in new taxes and Rs100bn in flood levy on imports. “We were expecting more demands from the Fund in the areas of taxes”, the sources said, adding things have changed in the last two days of policy-level negotiations.