Carbon tax on fuel proposed to placate IMF
ISLAMABAD: The government is mulling a move to introduce a carbon tax on petroleum and similar products, amid a push for an integrated general sales tax (GST) from the International Monetary Fund to achieve the true spirit and benefits of the value-added tax (VAT) for documentation and digitisation. Sources told Dawn that carbon tax was one of the measures being deliberated that could also help garner international financial support for newer aid instruments, including green and e-bonds and cheaper loans and grants from multilateral institutions. The future development programme is already being aligned with climate public investment management benchmarks, the sources added.