This simply means that the economic mangers of the government, who held talks with an IMF team in Dubai and briefed them on the salient features of the next budget, have tried to fool the masses, urban-based political players and business tycoons by leaking the false information that the RGST
had been shelved, The News reports.
Critics say that RGST
would have an inflationary impact and prices of consumer items would go up due to withdrawal of exemptions under the RGST
In case this facility is withdrawn, he said that the value added textile industry will face huge difficulties as a lot of time, energy and money would be required to tackle the complications of RGST
In order to understand the possible challenges and opportunities that could be encountered while implementing RGST
let us go back in history and remind ourselves that the transition from sales tax (ST) to GST in early 1990s was not smooth and trouble-free and we should not expect anything different when progressing from GST to RGST
In an address to a public gathering in the city of Sheikhupura in Punjab province, the former prime minister said RGST
would put an unbearable burden on the masses already groaning under high inflation.
However, the prices of those items could go up on which there is exemption and it is going to be removed under RGST
regime, a comparative analysis done by the FBR said.
Yes, the International Monetary Fund has agreed with Pakistan to not introduce the Reformed General Sales Tax, and now we will adopt Plan-B in which all tax exemptions will be eliminated in the annual budget 2011-2012, and this plan is more feasible than the RGST
," The Nation quoted a Pakistan Finance Ministry official, as saying.
The imposition RGST
is the part of the conditionalities of the IMF and the World Bank under the multi-billion dollar loan programmes.
Having given you our position that we support RGST
implementation let me share with you some of the concerns that we have.
Khan, a prominent economist, says the RGST
was facing stiff opposition because of misconception that it is highly inflationary, will increase the tax burden of poor consumers, and that it is a recipe for destroying businesses and trade in Pakistan.
Reliable sources have confirmed the recent IMF statements saying that if Pakistan does not enforce the RGST
, it will surely lose the funds it needs, the Daily Times reports.
The government could not meet the five performance benchmarks including enforcement of RGST
on goods and services by the federal and provincial governments, operationalising of Single Treasury Account at federal level, limiting central bank borrowing, formal approval of the State Bank of Pakistan Act 2010, and enforcement of power tariff rationalization plan seeking increase in power tariff and elimination of all power subsidies by the end of current fiscal year.