ISLAMABAD: The federal government has introduced revenue measures by taxing more than 285 importable items. The government is also increasing taxes on all services following an agreement with the International Monetary Fund (IMF).
The decision was taken at a meeting of the Economic Coordination Committee (ECC) of the Cabinet led by Finance Minister Ishaq Dar. The ECC also endorsed drug pricing policy and export of wheat flour with a subsidy.
The combined impact of additional revenue measures introduced on Monday and over the next couple of weeks had been estimated at about Rs150 billion in the remaining period of current fiscal year. These measures would help in partially offsetting the impact of about Rs200bn revenue shortfall anticipated by the Federal Board of Revenue (FBR) and additional Rs110bn expenditures arising out of military operation in Waziristan and resettlement of internally displaced persons (IDPs).
Dar and FBR spokesman Shahid Hussain Asad did not respond to questions about the size of budgetary measures. Another senior official, however, said the tax advisory committee had been consulted over the fresh revenue measures and the prime minister had cleared them earlier in the day on the request of the finance minister who also briefed him on successful completion of talks with the IMF last week in Dubai.
An official statement said the decisions regarding taxation measures were taken on a summary forwarded by the FBR.
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