Talks between Pakistan and the IMF have stalled due to a dispute over new income tax rates and the imposition of a standard 18% sales tax on certain goods. The disagreement revolves around income tax thresholds, merging tax slabs, and increasing tax rates for individuals and exporters. While the IMF proposes higher tax rates, Pakistan is hesitant, particularly concerning the burden on the salaried class. The IMF also recommends ending special tax regimes and imposing taxes on sectors like agriculture and health, further complicating negotiations.