Budget Considerations Include 5 to 10 % Reduction in GST

Islamabad (A Reporter): Government’s think tank on economy recommended 5 per cent to 10 percent reduction in the sales tax to increase peoples’ purchasing power, a source said.

Top bankers and bureaucrats are part of this think tank. Dr Ishrat Hussain, former governor State Bank, Waqar Masood, former Secretary finance, Ijaz Nabi, Sultan Ali Alana are part of this think tank.

Sources privy to the budget preparation said many members of the think tank have strongly recommended 5 per cent to 10 per cent reduction in the GST. However, ministry of finance and FBR are opposing this demand because this will make harder for the FBR to achieve revenue collection target. Next fiscal year’s revenue target is expected to be at PKR 5100 billion. GST has about 40 percent share in the total tax collection target. The economic think tank has suggested increasing direct taxes instead of relying on GST.

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