The federal government is considering imposing a new local tax on Islamabad residents as part of plans to give the capital a separate administrative status, according to a private news channel.
According to Finance Ministry sources, the proposed tax aims to generate additional revenue for the provision of essential public services and the operation of the new administrative structure in Islamabad.
The funds collected through the proposed levy would be spent within the federal capital. They would support hospitals, educational institutions, welfare programmes and administrative infrastructure, the sources were quoted as saying by the channel.
The proposal is expected to be discussed with the International Monetary Fund (IMF) during the upcoming economic review talks later this month.
The government is considering incorporating the new tax into the budget for the next fiscal year. However, officials have yet to determine the amount required to run the proposed administrative setup.
The Finance Ministry has prepared the proposal to create additional fiscal space for Islamabad while addressing its growing infrastructure and development needs.
The proposal will first be examined by a subcommittee tasked with reviewing taxation matters linked to Islamabad’s proposed status as an autonomous administrative unit.
If approved, the recommendations will be forwarded to a committee headed by Planning Minister Ahsan Iqbal for further consideration.
The proposal will subsequently be placed before Prime Minister Shehbaz Sharif for approval.
