Islamabad(Mudassar Iqbal);IMF Rejects Exemption Plea: Stationery Tax to Continue Hurting Consumers,The International Monetary Fund (IMF) has refused to grant an exemption on stationery tax, despite soaring prices of essential items. The decision comes as a blow to consumers, who are already struggling to cope with the rising cost of living.
According to sources, virtual negotiations between the government and global lender couldn’t be successful, keeping taxes on highlighters, punching machines and pencil boxes intact.
It must be noted that the government had imposed 10 percent sales tax on stationery items which took the prices up by 15 percent.
The IMF’s stance on the stationery tax has been a point of contention, with many arguing that it disproportionately affects low-income households and students. However, the fund has maintained that the tax is necessary to meet revenue targets.
As prices continue to rise, the stationery tax exemption denial is expected to further exacerbate the situation. Consumers are bracing themselves for even higher prices on essential items, including notebooks, pens, and other school supplies.
Pakistan’s Economic Hopes Boosted: $7 Billion IMF Deal
The government has been urged to reconsider its tax policies and explore alternative revenue streams to mitigate the impact on vulnerable segments of society. However, with the IMF’s refusal to budge, it remains to be seen how the situation will unfold.
