09 May 2004	Sunday	18 Rabi-ul-Awwal 1425

ISLAMABAD, May 8: The International Monetary Fund (IMF) has proposed to the government not to give any fresh tax exemption to any individual or sector during the up-coming budget of 2004-05.

Well-placed sources told Dawn on Saturday that the Fund has also recommended to the government to withdraw the remaining tax exemptions under income tax law as committed under the IMF's Poverty Reduction and Growth Facility (PRGF) programme.

The IMF has also asked the Pakistani government not to extend the time-bound SROs from the next fiscal year. Under the conditionalities attached with PRGF programme, Pakistan had so far withdrawn 75 income tax exemptions during the last two years. Similarly, general sales tax was levied on all kinds of fertilzers, cooking oil and vegetable ghee and some other small items during the same period under review.

According to the sources, the newly appointed chairman, Central Board of Revenue has already conveyed his intention to the Fund of withdrawing all tax exemptions currently available to individuals and various sectors.

The chairman further said that Pakistan had to go with the international community and, as pledged to them, would have to withdraw all tax exemptions, the sources added.