The government has promised the International Monetary Fund (IMF) that in the future, tax exemptions would not be granted via Statutory Regulatory Orders (SROs) without prior permission of the National Assembly.
The government has recommitted to neither launching any further tax amnesties or giving any further tax exemptions via Statutory Regulatory Orders without prior National Assembly approval, according to the Letter of Intent (LoI) provided by Pakistani officials with the IMF.
Furthermore, the government has guaranteed the lender that it would continue to work toward harmonisation of service sales tax across provincial authorities.
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The coalition government has already cancelled the previous regime’s stimulus package for the building industry.
According to sources, the wording of the government will require prior approval of the National Assembly before awarding any form of tax concession, lowering tax rates, or issuing new exemptions.
