current affairs MCQ #6679

Under IMF's Extended Fund Facility conditions for Pakistan, the primary structural benchmark related to taxation requires:

current affairs MCQ #6679

  1. Question 1

    Q1. Under IMF's Extended Fund Facility conditions for Pakistan, the primary structural benchmark related to taxation requires:

    • A) Reducing customs duties to zero on all imports
    • B) Abolishing the federal excise duty on beverages
    • C) Broadening the tax base by removing exemptions from the sales tax regime
    • D) Transferring income tax administration to provincial governments

    Answer: Broadening the tax base by removing exemptions from the sales tax regime

    Explanation: A central IMF benchmark for Pakistan's tax reform is broadening the sales tax base by eliminating the hundreds of exemptions and zero-ratings granted to politically influential sectors, which significantly narrows the revenue base.