Thursday, July 4, 2024 06:01 PM
FBR Considers Raising GST to Meet IMF Standards
- FBR mulls increasing GST to 19% for revenue enhancement
- Stakeholders advocate expanding tax base to include more sectors
- Consumers may face slight price hikes with higher GST rate
Image Credits: dawn.comThe Federal Board of Revenue is considering raising the GST to 19% to meet IMF standards, aiming to enhance revenue collection and strengthen the economy through broadening the tax base and ensuring compliance.
The Federal Board of Revenue (FBR) is currently contemplating a proposal to raise the General Sales Tax (GST) from 18% to 19%. This adjustment is being considered to meet the standards recommended by the International Monetary Fund (IMF). The move aims to enhance revenue collection for the government.
Stakeholders such as the Asian Development Bank and the IMF have been advocating for an expansion of the tax base. They suggest including sectors like real estate, agriculture, and retailers in the tax net to ensure a fair and comprehensive taxation system.
If the proposal is implemented, consumers may experience a slight increase in prices of goods and services due to the higher GST rate. However, the government anticipates that this adjustment will contribute to strengthening the country's economy and fiscal position.
The potential increase in the General Sales Tax is part of the government's efforts to improve revenue collection and meet international standards. By broadening the tax base and ensuring compliance across various sectors, the FBR aims to create a more sustainable and equitable tax system for the benefit of the country's economy.
