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Government Is Considering To Reduce Sales Tax From 17pc To 12pc

Shahzaz ud din

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Government Is Considering To Reduce Sales Tax From 17pc To 12pc
Not only is smuggling a crime but selling the items that have been smuggled is also a crime, the committee agreed.
By EMINRAJA On OCT 23, 2019
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  • The Senate’s Standing Committee has been informed that the government is considering to reduce the sales tax from 17pc to 12pc, by the Federal Board of Revenue (FBR) official this Tuesday. The FBR has added to this information by informing that the tax department would be notified soon regarding the fall in sales tax on yarn from about 10 to 5pc.
  • As per the Chain Store Association’s claim about the big retailers thinking of closing their business because of the sudden elevation in sales tax along with the raids by the government, the FBR policy member has said that not only is smuggling a crime but selling the items that have been smuggled is also a crime. He further adds that this is the core reason why the tax department is keeping a check on the goods in the big shops.
  • Political parties forcing the customs officials in Balochistan
  • On the other hand, while bringing a different agenda under discussion, the senators from different political parties have been forcing the customs officials to release what they have been considering as ‘’scrap’’ containers which have been held by the Balochistan customs. Senator Ahmed Khan told the committee that as a result, the customs officials have stopped 3 scrap containers of importers. Because of that, their work factories have been abruptly stopped.
  • Balochistan’s Chief Customs collector has also come up with the information that the majority of the importers have been importing iron bars and made them look like scrap. However, he made it clear that the iron bars do not come into the definition (legal) of scrap.
  • The Committee chairman also took notice of this and informed that this specific matter is included under the domain of the collector. This matter has been finalized as a ‘’ misdeclaration’’ by Chaudhary Zulfiqar due to which section 32 has been considered applicable.
  • The Advisor to PM on Commerce, Abdul Razak Dawood has clearly said that the government is taking measures to establish a menace free of smuggling on the issue of legal import of apple from ‘’Iran’’.
  • What are your views on this? Share with us in the comments bar below.
 

1Paki$tani

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How about they consolidate the GST under one heading and apply single percentage across the board.

We have too may different type of taxes eg: tax on phone recharge etc. why not just charge gst on that and bring uniformity rather than reducing one head of tax.

Other thing they should do is exempt certain consumption items from GST such essential health items (medicines), food items (grain, flour, vegetables & meat etc) and Dairy products. But continue to apply gst on end food product ie restaurants and other food vendors (other than naan and roti shops)
 

xyxmt

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In Pakistan, every law is introduced thinking no one will follow it and so is the sales tax, this is the reason to introduce such a high rate of sales tax and the idea was that maybe only 5% will pay this tax and squeeze them for everything. A serious regime will start low and slowly bring it higher, it would have been wise to start 5% and implement it 100% and then slowly move the rate higher.
 

1Paki$tani

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How will they make up the difference?
Tax system once made simpler would become more efficient and actual losses might not be as much.

Other thing is that with GST many low income earners are impacted thus with reduction in GST % they will be able to retain more money for spending else where which would indirectly contribute to the government coffers.
 

Baby Leone

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lol only reducing GST will do nothing, i am sure none of the process which goes up will come down.
 

1Paki$tani

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lol only reducing GST will do nothing, i am sure none of the process which goes up will come down.
It will do everything. GST is one thing that everyone pays including those who can barely afford. It might be peanut for those on higher wages but it is worth gold for those who are just surviving.
 

Salza

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Thanks God. Every item price in the market went sky up because of 17% sales tax all a sudden. Ideally it should be around 8%.
 

Baby Leone

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It will do everything. GST is one thing that everyone pays including those who can barely afford. It might be peanut for those on higher wages but it is worth gold for those who are just surviving.
lol pls try to comprehend what i said, all this would benefit poor when the prices will be reduced after reducing GST which is unlikely.

companies increase prices very fast but dont decrease at the same rate and pace.
 

SD 10

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Poor decision again. Just let the economy get back on track and enough with these subsidies and tax reductions.
:hitwall:
 

Riz

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They shouls not until economy recovered fully
In first try to fix this tax down to 2%,
This will attract those who are not regular tax payers.. Then keep exceeding this tax like price of DIESEL.. o_O

Poor decision again. Just let the economy get back on track and enough with these subsidies and tax reductions.
:hitwall:
Lol.. Do u know how many peoples actually paying sale taxes???
 

newb3e

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lower taxes increases spending resulting in more collection and more products and services being sold generating employment. i think thats how it works!
 

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