Pakistan likely to end sales, income tax exemptions in FY2024-25 budget

According to sources, Pakistan government is expected to abolish tax exemptions in the FY2024-25 budget at the request of the International Monetary Fund (IMF).

The proposed budget for the fiscal year is likely to include the gradual elimination of exemptions on sales and income tax.

Furthermore, there is consideration for imposing sales tax on tractors and pesticides, which could potentially result in increased prices for these crucial agricultural items.

Currently, pesticides and their active ingredients registered by the Department of Plant Protection are exempt from sales tax under the Sixth Schedule of the Sales Tax Act.