Pencils and books remain taxed as Pakistan agrees to wider fiscal reforms under IMF programme.
Image: ProPakistani
Pakistan’s government said the International Monetary Fund (IMF) has not allowed tax exemptions on educational items such as pencils and exercise books.
Officials told a Senate committee that despite requests, stationery goods will continue to be taxed under existing sales tax rules.
At the same time, the government announced easing restrictions on imported used cars, including lifting the age limit from July, subject to environmental standards.
Regulatory duties on used vehicles will also be reduced in phases under IMF-backed reforms.
Officials said the IMF opposed broad tax exemptions, including for education-related goods, as part of its fiscal discipline requirements.
Lawmakers noted that while essential items like sanitary products have received tax relief, basic school supplies remain taxed.
The government also ruled out further tax cuts for beverages and exporters, citing already extended concessions.
Separately, a national tariff reform plan will gradually reduce average import duties, though rates remain above targets.
The IMF-backed programme continues to push Pakistan toward wider tax base expansion and reduced exemptions across sectors.
