ISLAMABAD: The International Monetary Fund (IMF) has rejected the Federal Board of Revenue (FBR) single stage sales tax proposal.
According to sources, during the meeting with IMF officials in Dubai two days ago, the FBR proposed single stage sales tax as it was also functioning and imposed in America.
The FBR sources said that working on the proposal is still underway and with the introduction of single stage sales tax system it will also solve different issues related to refunds, input adjustment and other.
Moreover, IMF has expressed concerns over the single stage sales tax system and said that with the imposition of single digit sales tax the revenue may decrease while Pakistan is already facing a revenue shortfall.
