IMF approves tax cut on coal imports, prices expected to drop

Islamabad – A decision has been made to reduce the value-added tax on coal imports from 3% to 1%.

According to sources, the IMF has approved the reduction of the value-added tax on coal imports from 3% to 1%. This reduction in the minimum value-added sales tax is expected to provide relief to the industrial sector.

Sources say that imported coal is expected to become cheaper for the cement, power and other industries. The reduction in the value-added tax will lower production costs and overall business expenses. It will also reduce pressure on the working capital of industries.

According to sources, the government is considering providing tax relief to promote industrial activity and the production sector. There is also a possibility that the 1% withholding tax on exporters may be abolished.

On the other hand, the IMF has rejected a proposal to impose a 70 billion rupee levy on windfall profits of oil and gas companies. As a result, the federal government’s efforts to impose a windfall levy under Section 99D of the income tax law on oil and gas companies may fail.