Business
Pakistan government Scraps Proposed Sales Tax Hike
Pakistan government has opted against implementing a proposed 1 percent increase in the sales tax rate, maintaining the current rate of 18 percent.
Prime Minister Shehbaz Sharif dismissed the proposal, citing concerns over its potential to exacerbate inflationary pressures on citizens.
The Federal Board of Revenue (FBR) had advocated for the sales tax hike, anticipating an additional revenue influx of Rs. 40-50 billion for the fiscal year 2024-25.
ALSO EXPLORE
Understanding the Roots of Extremism and Counter Strategies
However, in light of the potential immediate impact on consumer prices, the government opted to uphold the status quo in the upcoming Finance Bill.
Prime Minister Sharif reiterated his stance against the proposed tax hike, emphasizing the need to prioritize the welfare of the general populace amidst economic considerations.
The decision underscores the government’s commitment to mitigating the burden on citizens and fostering a conducive environment for sustainable economic growth.
This development comes in the wake of discussions between the FBR and top government officials regarding the budget proposal to raise the sales tax rate.
Despite deliberations, the government reaffirmed its stance against the tax hike, affirming that the 18 percent sales tax rate would persist into the next fiscal year.
The decision to forego the sales tax increase reflects a balancing act between revenue generation objectives and socio-economic welfare concerns.
Prime Minister Sharif’s rejection of the proposal underscores a commitment to prudent fiscal management and responsiveness to the needs of the populace.
