Tax authorities propose hike in GST rate, other taxes in upcoming budget
ISLAMABAD: Federal tax authorities have proposed some unpopular decisions with regard to sales tax in the next budget, citing sources ARY News reported on Monday.
According to sources, the tax authorities have proposed reversing exemptions to the tune of Rs. 70 billion at various items and also recommended 40 billion rupees new taxes in the upcoming budget.
The tax authorities also proposed to abolish concessionary tax rates charged on the sales of sugar, steel, edible oil, imported raw material and semi-finished goods aimed at generating maximum possible revenues.
The standard rate of General Sales Tax (GST) recommended to increase from existing 17 percent to 18 percent. The one percent hike in GST will generate additional 40 billion rupees in revenues, sources said.
The sales tax on sugar will be increased from existing seven percent to 18 percent in the new budget, while sales tax on edible will be enhanced from five percent to 18 percent, sources said.
There is also a proposal to hike sales tax on tractors from existing five percent to 18 percent.
Moreover, a proposal of Rs 5600 duty on steel products is under consideration for the next budget, sources said.
The authorities also considering to reimpose duties on cotton import, which were reduced to zero in the current fiscal year budget.
Three percent customs duty and two pct additional duty being considered to impose on steel products in the upcoming budget, according to sources.
The tax authorities have recommended increasing number of income tax slabs for the individuals, suggesting 35pc highest income tax rate for business income of the individuals, which is 29 pct now.