The government will submit draft legislative amendments to parliament to harmonize the income tax and general sales tax (GST) laws, including for tax administration purposes, and to reduce exemption for both taxes.
R0 macroeconomic rationale:  To ensure the targeted reduction in the fiscal deficit and help eliminate State Bank of Pakistan's (SBP) financing of the government. Revenue measure to significantly increase the tax-to-GDP ratio, which is low by international standards.