IMF Has Proposed A New Rs 15.6 Trillion Tax Target For The Fiscal Year 2026-2027 Which Includes Reducing Sales Tax Exemptions On Fuel As Pakistan Resists
According to a news article by Profit Pakistan Today, IMF has put forth a new proposal for the tax target for Pakistan’s fiscal year 2026-2026 from July 1st this year to June 30th next year. In this proposal, the new Rs 15.6 Trillion Tax Target was put forth which Pakistan has resisted.
This proposal includes the need for sales tax exemption on fuel to be reduced at the very least. Moreover, 18% sales tax on solar energy users is also recommended by the IMF which paint a bleak picture for common Pakistani citizens, prompting resistance and fears.
In addition to this, the proposal included that the tax-to-GDP ratio should be increased to 11.3% compared to around 10.7% that authorities consider achievable. Furthermore, the government has opposed imposing general sales tax on fuel, citing revenue-sharing constraints with provinces. This marks the first intended resistance by the Pakistan Government has IMF’s proposals.
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