{
  "id": 12751929,
  "title": "Unrecovered VAT can push input cost up by 8.9pc: IMF study",
  "url": "https://urgent.news/2026/10/08/unrecovered-vat-can-push-input-cost-up-by-8-9pc-imf-study",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T00:42:52.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40443225/unrecovered-vat-can-push-input-cost-up-by-89pc-imf-study"
  },
  "original_language": "en",
  "account": "The International Monetary Fund (IMF) has identified significant distortions in tax systems that can impact key economic choices. One such distortion is unrecovered value-added tax (VAT), which can increase input costs by up to 8.9 percent. Corporate taxation, on the other hand, can raise the cost of capital by a more substantial 15-19 percent. Shafik Hebous, a deputy division chief at the IMF, presented these findings during a discussion hosted by the IMF and the Urban-Brookings Tax Policy Center. These tax distortions influence crucial economic decisions, particularly those related to investment, production, and employment.",
  "summary": "ISLAMABAD: The International Monetary Fund (IMF) has highlighted significant distortions in tax systems that affect key economic decisions, noting that unrecovered value-added tax (VAT) can raise input costs by up to 8.9 percent. In comparison, corporate taxation can increase the cost of capital by 15-19 percent. Shafik Hebous, deputy division chief in the IMF’s fiscal affairs department,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}