The government has started implementing the conditions imposed by the International Monetary Fund for the revival of $6 billion extended fund facility programme as it has readied a bill that will allow it to levy new taxes amounting to Rs350 billion to Rs400 billion, reported 24NewsHD TV channel.

Sources divulged on Monday that the government in its pursuit to fulfil the IMF conditions has prepared a bill permitting it to impose new taxes to the tune of Rs350-400 billion. 

They reveal that the Law Ministry has finalized the Fourth Amendment Bill to Taxation Law for levying new taxes and slashing development budget. The government has decided to cut down developmental expenditures from Rs900 billion to Rs700 billion, they added.

According to sources, the bill also recommends abolition of all ‘unnecessary tax exemptions’. It suggests to gradually raise petroleum levy.

The Law Ministry has also tinkered with the Amendment to State Bank of Pakistan Act, sources concluded. 

Reporter Waqas Azeem