ISLAMABAD: The World Bank on Thursday presented important demands to the Pakistani government for tax reforms and the elimination of exemptions in duties and sales tax.
The World Bank, while releasing its report on Pakistan, has recommended the government reform the tax system and eliminate sales tax exemptions to promote economic and social improvement.
The report calls on the government of Pakistan to formulate a national policy for child development and advocates reducing subsidies on energy and other commodities while reallocating these funds to public welfare initiatives.
The report suggested that “the government should implement austerity measures and promote public-private partnerships in state-owned companies.”
The World Bank report recommended the Pakistani government restructure the tax system, eliminate duty and sales tax exemptions, and suggest new taxes on real estate and the agriculture industry.
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It is also recommended to formulate a long-term commercial tariff strategy and align the gas tariff for consumers with the cost of supply.