The federal government has decided to abolish Rs 140 billion income tax exemption for various sectors.
As per the details, the government has decided to bring an ordinance to abolish income tax exemption on the condition of IMF.
Sources said that the procedure for bringing the Presidential Ordinance has been completed.
The Cabinet approved a summary of the Presidential Ordinance to abolish income tax exemption. The federal cabinet has approved the ordinance through summary circulation.
Due to lack of time, the bill was not passed by Parliament, according to sources.
The federal government has to inform the IMF before March 24 about the abolition of income tax exemption.
Earlier in February, an agreement was reached between the International Monetary Fund (IMF) and Pakistan which has paved the way for the release of a $500 million instalment to Pakistan.
According to the IMF statement, Pakistan had assured of a structural reform program after which Pakistan’s debt program has been restored.
The statement further said that the IMF has approved the second to fifth review for Pakistan and the review mission has recommended the release of a loan of 50 500 million.
According to the IMF, the IMF Executive Board will approve the release of $500 million loans to Pakistan, after which $500 million will be released to Pakistan.