ISLAMABAD: Due to the agreement with the International Monetary Fund (IMF), Finance Minister Miftah Ismail on Thursday removed the ban on every imported item. Imported items will face a 600 percent or higher research and development tax. The board will meet IMF on August 29, where such financial matters will be finalized, BOL news reported. 

According to the details, the federal minister held a press conference where he claimed, “we don’t have enough dollars to import luxury items such as Mercedes into the country. I give priority to wheat, rice, cotton, and other crops instead of such luxury items. ” The finance minister also mentioned that prohibited duties will be applied on CBU imports in the form of RDs, customs duties, and sales tax.

Nonessential things such as imported shoes, imported purses, luxury cars, iPhones, rare fish, and meat items will face heavy taxes. He mentioned, “even after the bans, the items are being smuggled to Pakistan through green channels. If you visit the luxury hotels in Islamabad, Lahore, and Karachi, you will still find the meat of rare fish on their menu. Such items will be regularised and taxes will be applied. ”

“Our government couldn’t collect the targeted tax of Rs 42 billion.” The new revised target is now Rs 27 billion. The fixed taxes on electricity on retail will be removed, while a 5 percent sales tax and 7.5 percent income tax will stay,” the federal minister said. According to him, the tax cycle will be followed till September 30 for the 50 units of usage and it will increase accordingly as the units increase.

The minister said that after the summary given by the Federal Board of Revenue (FBR) and with the consultation of Prime Minister Shehbaz Sharif Rs 36 Billion in taxes will be imposed on tobacco items and cigarettes. “Due to the requirements of the World Bank and the IMF, the FBR used to apply tax on subsidies of electricity which is now removed. Taxes on one-stroke engines of tube wells are also to be removed.”

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Miftah said that the exports have increased as compared to the last year. Imports were reduced by 18 percent. The trade deficit has been reduced by 30 percent. The amount received in the banking sector has profited the country by $600 Million. The pressure on rupees has reduced it and the dollar will fall more.