” Pakistan ‘fails’ to convince IMF to reduce stationery taxes ” | Express News Pro

ISLAMABAD: Pakistan’s virtual negotiations with the International Monetary Fund (IMF) to reduce taxes on stationery items have failed, ARY News reported citing sources.

According to sources, the IMF has insisted on maintaining the 10% sales tax on stationery items, leading to a significant increase in prices, despite efforts by the government.

Sources said that the tax increase has resulted in a 15% rise in prices of stationery items, affecting students, businesses, and the general public.

The tax increase has affected various stationery items, including children’s pens, staplers, markers, calculators, sharpeners, erasers, highlighters, punching machines, and pencil boxes. The IMF has maintained that the sales tax on these items will remain in place.

READ: IMF wants Pakistan to impose tax on stationery items

Pakistan imports stationery items from countries like China and Hong Kong, and over 850 importers in Pakistan are affected by the tax increase, sources added.

Earlier, the federal government imposed 10pc General Sales Tax (GST) on all stationery items in the amended Finance Bill of Budget 2024-25.

According to the Finance Bill, the government imposed to end tax exemption on stationery items and has imposition of 10pc GST on all items.

10pc sales taxes imposed on pencils of all brands, inks, erasers, sharpeners, ball point, markers. The tax was implemented on all the stationery items from July 1 (FY2024-25), if the Finance Bill get the nod of the lower house of the Parliament.