[Pakistan] IMF asks govt to levy 15% GST on computer hardware & software

["Irfan Khan" <khania2@super.net.pk>]

IMF asks govt to levy GST on more items  

Dawn, By Our Staff Reporter  
4/16/2003
http://www.dawn.com/2003/04/16/top6.htm
  

ISLAMABAD, April 15: The tax authorities are reluctant to impose 15 
per cent General Sales Tax (GST) on more items from the next 
financial year as has been demanded by the International Monetary 
Fund.  

Well-placed sources told Dawn on Tuesday that the IMF had asked the 
Pakistan government to impose 15 per cent GST in the budget of 2003-
04 on bricks, cement blocks, computer hardware, software, specific 
machinery and real property.  

The IMF has also recommended imposition of the GST to all services 
except residential rent and health, education and financial services, 
once the administration of the current tax-base was suitably 
stabilised.  

The sources said the tax officials had conveyed their concern to the 
IMF that the levy of the GST on these items was not practical, which 
they believed would cause harm to end consumers and production of 
these items.  

Elaborating further, the sources said that the tax officials had also 
told the IMF that bricks and cement blocks industry employed a number 
of people in rural areas.  

They said the levy of the GST on that sector would not only result in 
unemployment but also hamper construction activities in the country.  

Rejecting the levy of the GST on computer hardware and software, the 
sources said that with taxing these items, its prices would shoot up 
immediately, thereby undermining government efforts to promote 
information technology in the country, the sources said.   



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