The IMF has demanded an 18 percent GST on petroleum products and solar systems, after which there is a risk that petroleum products and solar systems will become more expensive. The IMF has proposed an increase of more than Rs 1.6 billion in the federal budget for the next fiscal year 2026-27 and a target of more than Rs 15,600 billion in tax collections.

FBR sources have said that the IMF has made several demands to the government, under which it has proposed an increase of more than Rs 1.6 billion in the tax target for the next fiscal year.

Sources further say that the IMF has demanded an 18 percent GST on fuels including petrol. Currently, the GST rate on petroleum products is zero. Similarly, the IMF has also emphasized imposing an 18 percent tax on solar consumers and has demanded the abolition of tax exemption on new homes.

IMF has proposed to impose asset-based tax on small businesses and traders and keep the tax target at more than Rs 15,600 billion in the new budget, while the target of Rs 14,131 billion was reduced to Rs 13,979 billion this year. Despite a reduction of Rs 152 billion in the target, there was a shortfall of Rs 428 billion in 8 months.

According to FBR officials, the decline in tax collection in the first 9 months of the fiscal year is likely to exceed Rs 600 billion and more than Rs 865 billion has been collected so far this month (March), the target is 1367 billion, imports affected due to war, and the decline in business activities due to expensive oil has been cited as the reason.

The FBR is hopeful of meeting the deficit through the collection of super tax and surcharge, while officials in the Ministry of Finance say that there will be further discussions with the IMF before the new budget.