Home » International News » 2011 » March » March 2, 2011

Pak Govt mulling presidential ordinance to impose new taxes

March 2, 2011 - Islamabad

The Pakistan Government is considering imposing new taxes- 15 per cent flood income tax surcharge and 2.5 per cent special excise duty- through a presidential ordinance, as it expects stiff opposition from political parties in parliament in this regard.

"Presidential ordinance is being considered as the most effective way for imposing new taxes because the authorities strongly feel that the country has to move ahead despite the resistance from political forces in the country," The Daily Times quoted official sources, as saying.

They said the withdrawal of some of the key General Sales Tax (GST) exemptions on fertilisers, pesticides, packed milk and dairy products was likely through the presidential ordinance.

The withdrawal of GST zero-rating on local sales of five export-oriented sectors- textile, leather, carpet, surgical and sports goods- through presidential ordinances was also expected, they added.

The sources revealed that the presidential ordinance would be promulgated once the ongoing National Assembly session was over.

The architects of Plan-B, termed "alternate to the Reformed General Sales Tax (RGST)", have been finalised at a meeting of the Finance Ministry and the Federal Board of Revenue (FBR), they added.

The government had tabled the RGST bill and the Flood Surcharge and Special Excise Duty bill in parliament in latter half of 2010, but failed to get them passed owing to a strong resistance from all major political parties.


Comment on this story