Pakistan, June 4 -- The International Monetary Fund (IMF) has turned down Pakistan's proposal to impose a wealth tax and a 5% duty on one-day-old chicks. These suggestions, made by the Federal Board of Revenue (FBR), aimed to raise quick revenue but lacked broad economic logic. The IMF stressed that taxation should focus on income rather than targeting specific industries or essential goods. It also questioned the FBR's approach, calling such ideas signs of poor planning.

However, the IMF approved a Rs10 billion digital services tax, offering a boost to revenue from the fast-growing online economy. Pakistan also gained IMF approval for reducing income tax rates for middle-income groups earning below Rs500,000 per month. Although the inco...