The government has accepted some key demands made by the International Monetary Fund (IMF) as talks between the two sides on the budget for the next financial year (FY), 2025-26 progress.It reported that t both sides had agreed to withdraw the tax exemption granted to the erstwhile Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA). 

They informed that similarly both the government and the IMF had also agreed to impose a levy on the petroleum products from the next FY, starting July 2025 following which per liter of fuel levy was expected to reach Rs100.   Sources further said that both sides had also thought over using a levy for a reduction in the power sector subsidies and circular debt.  

The levy, which currently stands at Rs78 per liter on petrol and Rs77 per liter on diesel, is being increased as part of a broader strategy to boost non-tax revenues and support power and electric vehicle subsidies.  They informed that customs duty, additional customs and regulatory duty would be reduced under the New Tariff Policy 2025-2030. 

Credit: Independent News Pakistan (INP)