The government’s plan to reduce the electricity tariff faced a setback as the International Monetary Fund (IMF) turned down Islamabad’s proposal to cut sales tax.
The Ministry of Energy had recommended a reduction in sales tax, prompting the government to submit a request to the global lender. However, the IMF rejected the proposal, citing its loan program conditions.
The IMF stated that exemptions from new taxes cannot be granted, as reducing sales tax would hinder the achievement of tax collection targets.
Currently, consumers are charged GST twice in electricity bills—18 percent on the total bill amount and another sales tax on the fuel cost adjustment.__The Nation
