IMF seeks explanation from Pakistan for not imposing tax on big shops

The International Monetary Fund (IMF) has sought an explanation from the Pakistan government for not imposing a tax on big shops measuring 1,000 square feet, ARY News reported.

ARY News is a Pakistani news channel.

Pakistan's Federal Board of Revenue (FBR) chairman confirmed that the IMF sought an explanation for not imposing a tax on big shops.

A session of the Senate's Standing Committee on Finance was held under the chair of Senator Salim Mandviwalla on Thursday. During the session, it was learnt that the national exchequer suffered USD 847 million loss due to imports of 31,542 banned items.

The Senate body sought a report from the FBR in a month. The FBR officials, however, rejected the imports of banned items which caused a massive financial loss to the exchequer.

The FBR officials in a briefing said that 28,321 items were not banned and their imports were carried out through open accounts. They added that an investigation is underway into the imports of 3,351 banned items which caused a USD 6 million loss.

They detailed that the banned items included auto spare parts, imported shoes and other commodities.

The State Bank of Pakistan (SBP) told the Senate's standing committee that LCs are not being stopped as per the commitment with the IMF. The central bank's officials said that all kinds of LCs are being opened after June 2023, as per ARY News.

The Senate body sought a report after clearing the complaints regarding the restrictions on LCs for imported vehicles.

The Pakistan government earlier in August fulfilled an important condition of the International Monetary Fund (IMF) and Financial Action Task Force (FATF).

The National Anti-Money Laundering and Counter Financing of Terrorism Authority Bill 2023 was passed by the National Assembly. It was moved by the Minister of State for Foreign Affairs Hina Rabbani Khar.