current affairs MCQ #6821

Which major tax authority reform is a key IMF condition for Pakistan's fiscal consolidation?

current affairs MCQ #6821

  1. Question 1

    Q1. Which major tax authority reform is a key IMF condition for Pakistan's fiscal consolidation?

    • A) FBR broadening the tax base and reducing exemptions
    • B) Merging FBR with the Finance Ministry
    • C) Replacing income tax with a flat sales tax
    • D) Privatising FBR operations to a private firm

    Answer: FBR broadening the tax base and reducing exemptions

    Explanation: A central IMF condition for Pakistan's fiscal consolidation is that the Federal Board of Revenue must broaden the tax base by bringing more individuals and businesses into the tax net and eliminating distortionary exemptions, to raise the persistently low tax-to-GDP ratio.