Pakistan gets IMF nod for sugar import tax relief

The International Monetary Fund (IMF) has lifted its objection to Pakistan’s tax relief on imported sugar, following successful negotiations by the government. The relief, detailed in a FBR notification, reduces the sales tax from 18% to 0.25% and is not part of the national budget or a subsidy program, a stance Pakistan clarified to address IMF concerns over fiscal discipline amid a sugar shortage, the sources within the finance ministry added. Pakistan plans to import 100,000 tons of sugar in the first phase, costing $56.7 million, with a tax exemption of Rs 1.85 billion.