ISLAMABAD: The government is not reducing standard rate of sales tax from the current rate of 17 per cent.
Finance Minister Ishaq Dar informed the Senate that there is no such proposal under consideration.
In a written reply to a question by Senator Muhammad Azam Khan Swati, the minister also said that there is no proposal at the moment for reduction in customs duty on essential commodities under consideration of FBR.
However, he said that all the essential commodities of common man’s use are either totally exempt from levy of sales tax or subjected to reduce rate of sales tax. So is the case with the rate of customs duty on import of food basket items including vegetables, pulses etc.
The minister said that tax policy mix has increased the share of direct taxes from 19 percent in year 1970-71 to 39.92 per cent in 2014-15.
Direct taxes are progressive taxes being followed by the government. This policy, he said, aims at bringing the concept of equity in the tax system. He said that a high powered committee headed by him has recommended a three year span for elimination of all the concessionary SROs.
