Geo436.com blog: Reformed ST to cause additional Rs119b burden

Geo436 ISLAMABAD: The people will be burdened with additional Rs119 billion with reformed Sales Tax in the wake of conditions streamed from International Monetary Fund (IMF), Geo News reported Sunday.

The tax was to come in force from October 1st; however, it is expected that it will be imposed from November.

The sources privy to Finance Ministry told Geo News that revenues of additional Rs59 billion would be received as a result of imposition of sales tax in three phases.

Reformed Sales Tax will put an end to tax exemptions worth Rs60 billion. The tax exemptions worth Rs147 billion were given last fiscal year.

The sources in Federal Board of Revenue (FBR) said the reformed ST would raise national income by 0.75 percent tax ratio.

The reformed ST imposition will take the proportion of taxes in GDP from 9 to 9.75 percent.

The government is making efforts to impose sales tax from November 1st, so that the six tranche under IMF's Standby Program could be easily issued.