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15pc GST on seeds and other agri products
 ISLAMABAD-
The government is likely to levy 15 per cent general sales tax
(GST) on electricity, edible oils and all kinds of seeds .
Informed sources told Dawn on Friday that the seeds, which are
most likely to be brought under GST, include soyabean,
rape-seed, canola seeds, fruits and spores for sowing. The
exercise is a part of International Monetary Fund (IMF)
conditional ties for getting the next tranche of poverty
reduction and growth facility.
IMF had asked Pakistan to levy 15 per cent GST on
pharmaceuticals, edible oils and electricity by end March
besides withdrawal of major exemptions from other products.
The sources said that GST on edible oil will be announced
during the current week.
GST on electricity was already levied, however, its impact was
not passed on to the consumers as the government paid subsidy
to Water and Power Development Authority (Wapda) against it.
Riaz Ahmed Malik, chairman, CBR in a press conference last
week admitted that the items, which were major sources of duty
will be taxed at a rate of 15 per cent in phases.
The government was also planning to levy GST on tractors, tube
wells, some agriculture inputs and information related
products. The government had already levied GST on actual
price of urea and on supply and manufacturing of all kinds of
fertilizers as part of IMF's conditional ties.
Courtesy Dawn March
30, 2002
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Pakissan.com;
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