|
GST on
tractor, tubewell likely by month-end
ISLAMABAD-The government is likely to impose 15 per cent
General Sales Tax (GST) on tractors and tubewells by the end
of current month to extend GST net to all agricultural inputs
under the International Monetary Fund's conditionality for
last standby arrangement tranche.
Informed sources told Dawn on , September 4, that it is
expected that the levy of GST would fetch about Rs1.4 billion
to the national exchequer during the current financial year.
"An ordinance to this effect will be promulgated by the end of
the current month".
Furthermore, the sources were of the opinion that in order to
achieve the revenue target set for the current financial year,
the government is also expected to collect around Rs5 billion
from the levy of GST on all agriculture inputs during the
current financial year.
However, the Central Board of Revenue (CBR) has already
recorded a shortfall in the first two months of the current
fiscal by obtaining Rs42 billion against Rs47 billion netted
during the corresponding two months of the last financial
year, showing a visible shortfall of Rs5 billion.
Under the SBA agreement, the government may also levy GST on
domestically produced cooking oil and vegetable ghee from
December 1, 2001, the sources said.
Earlier, the government levied GST on urea and pesticide
during the month of March 2001, as a part of its commitment
under SBA agreement with IMF that all agriculture inputs would
be brought under the GST net by the end of the current month,
sources informed.
Moreover, the government had already levied agriculture income
tax and now the levy of GST on all agriculture inputs would
further increase burden on the farmers.
Courtesy Dawn, September 5, 2001
|
Other News
|
