The Pakistani government has faced a setback in its negotiations with the International Monetary Fund (IMF) regarding tax relief on stationery items. Despite strong efforts by the Federal Board of Revenue (FBR), the IMF has maintained its stance on the 14 percent sales tax.
This decision comes in response to a nationwide strike launched by stationery traders last month. The traders vehemently opposed the 14 percent sales tax, deeming it unfair and detrimental to the education sector.
The IMF’s rejection of the tax exemption request is likely to further fuel discontent among stationery traders and raise concerns about the impact on the education sector. It remains to be seen how the government will address this issue and find a solution that balances revenue generation with the interests of businesses and consumers.