GST and False Propaganda.

[Argus Panoptes]

GST also applies to petrol /facepalm

That affects everything.

Evil Nooras!..........

So who will you blame if international oil prices rise (which will happen) and our rupee devalues (which will also happen), leading to a rise in petrol and diesel import prices?

 

[truthseer]

So who will you blame if international oil prices rise (which will happen) and our rupee devalues (which will also happen), leading to a rise in petrol and diesel import prices?

Well, since the pattern of the last 5 years has been to blame the government, I believe we, the PPP, should do the same.

I mean, you Nooras did the same to us, it was not our fault, we did the best job anyone could. Extenuating circumstances, but you took political advantage. We will too

 

[Jango]

But that depends upon how fast the transmission mechanism is. However, to say that vegitables are linked to oil prices directly, and that too to what extent is something thats very vague. You can't just link the changes in a indirect input to the price of a resource.
And secondly, the fertilizers prices are more linked with the prices of gas than oil becuase gas constitutes as one of major inputs for fertilizer production

I didn't say that it affects directly, but in one way or another, increase in GST makes things costlier across the board. That is why direct tax should be implemented, which targets na specific class or group.

In the end, the price offruits and vegetables does increase, no denying that.

As for the fertilizer thing, generally a rise in petrol also accompanies a rise in gas prices. Not always, but most of the times.

 

[Hyperion]

Yara tumm bhee na khwa-m-khwa aalim-ul-maaeshat-sheikh @hasnain0099 say behas ve guftago karr rahay ho. What do you know that he doesn't. That's what he thinks.

I didn't say that it affects directly, but in one way or another, increase in GST makes things costlier across the board. That is why direct tax should be implemented, which targets na specific class or group.

In the end, the price offruits and vegetables do increase, no denying that.

As for the fertilizer thing, generally a rise in petrol also accompanies a rise in gas prices. Not always, but most of the times.

 

[Argus Panoptes]

Well, since the pattern of the last 5 years has been to blame the government, I believe we, the PPP, should do the same.

I mean, you Nooras did the same to us, it was not our fault, we did the best job anyone could. Extenuating circumstances, but you took political advantage. We will too

Yes, it is typical to blame for political advantage even for problems beyond the government's control. Please carry on.

Oh, and I do not support any party over the other. I just go by facts.

 

[truthseer]

Yes, it is typical to blame for political advantage even for problems beyond the government's control. Please carry on.

Oh, and I do not support any party over the other. I just go by facts.

Well then, it is obvious that petrol prices and even tax is not in the government's hands. Especially with IMF and World Bank involvement.

 

[Argus Panoptes]

Well then, it is obvious that petrol prices and even tax is not in the government's hands. Especially with IMF and World Bank involvement.

Actually, that is correct. The government, no matter which party's, has control over only about 10% of the budget. The rest is all in other more powerful hands.

 

[Developereo]

You guys are opposing just for sake of opposition. How will you boost govt revenue and reduce deficit. And you cant expect the miracle of adding more people to tax net, it will take time.

No, we are saying that the emphasis should be on income and property taxes.

Consumption taxes, like the GST, are regressive since poor people end up paying a larger percentage of their income in taxes this way.

Pakistani politics is controlled by the rich elite who will always try to shift the tax burden away from themselves onto the poor.

 

[livingdead]

No, we are saying that the emphasis should be on income and property taxes.

Consumption taxes, like the GST, are regressive since poor people end up paying a larger percentage of their income in taxes this way.

Pakistani politics is controlled by the rich elite who will always try to shift the tax burden away from themselves onto the poor.

I know indirect tax like this hits poor harder, but asking to suddenly widen tax net is not feasible. That should be the long term goal though.

Are you impying to increase tax rate btw.?
Property tax, is also unfair for those who have aquired property from their ancestors and property price increases due to speculation, but they dont have enough income. Or old retired people.

 

[Argus Panoptes]

No, we are saying that the emphasis should be on income and property taxes.

Consumption taxes, like the GST, are regressive since poor people end up paying a larger percentage of their income in taxes this way.

Pakistani politics is controlled by the rich elite who will always try to shift the tax burden away from themselves onto the poor.

Yes, and they do it very successfully as well, present and past budgets included. The sad truth is that this system of regressive taxation will not change for the foreseeable future. This means that the lower and middle classes have no option but to bear the burdens imposed on them.

 

[Leader]

Sales Tax: FBR says vegetables, meat, milk, eggs, red chilies, fish, drugs, pulses, fruits, poultry, ginger, turmeric, cereals and products of milling industry, ice, poultry feed, butter, yogurt, butter, salt, potato, onions, bread, nan, chapatti, bun, rusk and others continue to remain exempted from Sales Tax. It is also clarified that the increase in the rate of Sales Tax from 16% to 17% under the declaration issued under the Provisional Collection of Taxes Act, 1931 does not affect any of these items, which are exempted under the Sales Tax Act, 1990.

how can you tax them anyway? #Cash dealing ?

 

[Jungibaaz]

Ah you fools.

GST and such taxes will ALWAYS lead to inflation with varying degrees.
Go back and study economics again, seriously lads, this is basic high school economics.

 

[Jungibaaz]

The rise in GST tax is insufficient change in the tax system, the income and ownership taxes for wealth are not progressive enough, and also tax net is too narrow, and not to forget tax evaders.

On one hand PMLN is increasing GST which WILL cause inflationary pressures, argue all you want, it will create inflation, just how much inflation, is yet to be seen.

And I agree tax revenue needs to be raised, however, PMLN have cut corporate tax for example.
Priorities need to be sorted out. I understand that they are for market liberalisation, but their approach is inconsistent and fails to address the much bigger issues about taxes. And all taxes like GST are regressive, there's no argument about it. The poor will be hit worst by GST either because goods and services which they too rely on will be more expensive and that price rise holds a larger proportion of their income in comparison to the rich.

It's good to see PMLN making some sort of changes, don't get me wrong.
But I told you folks, after all those promises made by NS and SS, I am going to be highly critical.

 

[Argus Panoptes]

Sales Tax: FBR says vegetables, meat, milk, eggs, red chilies, fish, drugs, pulses, fruits, poultry, ginger, turmeric, cereals and products of milling industry, ice, poultry feed, butter, yogurt, butter, salt, potato, onions, bread, nan, chapatti, bun, rusk and others continue to remain exempted from Sales Tax. It is also clarified that the increase in the rate of Sales Tax from 16% to 17% under the declaration issued under the Provisional Collection of Taxes Act, 1931 does not affect any of these items, which are exempted under the Sales Tax Act, 1990.

how can you tax them anyway? #Cash dealing ?

Simple. You tax the associated inputs necessary to produce, transport and sell these items, but not the items themselves.

 

[Developereo]

Are you impying to increase tax rate btw.?

The balance sheet would improve tremendously if the govt. would actually collect the taxes due under existing law.

Property tax, is also unfair for those who have aquired property from their ancestors and property price increases due to speculation, but they dont have enough income. Or old retired people.

Yes, it's a cat-and-mouse game of helping such people as you describe, and rich people shifting properties to relatives to escape taxation.

Yes, and they do it very successfully as well, present and past budgets included. The sad truth is that this system of regressive taxation will not change for the foreseeable future. This means that the lower and middle classes have no option but to bear the burdens imposed on them.

Yup.

And the worst part is that, if and when Pakistan goes off the fiscal cliff, the rich thieves will already have shifted their money into foreign currencies abroad. The people left holding the bag will be the masses.