ISLAMABAD: The business community of the federal capital has urged the government to bring down general sales tax (GST) rate to single digit level in the next federal budget 2015-16
Islamabad Chamber of Commerce and Industry (ICCI) said that the low level of GST will help reducing inflation, boosting business activities and attracting more investment.
ICCI President Muzzamil Hussain Sabri said that 17 per cent GST in Pakistan was very high as compared to many other countries. He said GST was just 5% in Taiwan, 6% in Malaysia, 7% in Iran & Singapore, 8% in Japan, 10% in Afghanistan & Indonesia and 12.36% in India while it was very high in Pakistan, putting the business community at great disadvantage to competitors.
He said high GST for a developing country like Pakistan was not suitable and added that it was major hurdle in growth of business activities as it has caused price hike, squeezed the purchasing power of consumers and was a discouraging factor for attracting new investment.
He said high GST also affected the margins of manufacturers as they have to share GST burden and was encouraging businesses towards the informal economy. He said the single digit GST will create multiple benefits for the economy as it will create a conducive environment for growth of trade and industry, reduce inflation, enhance purchasing power of people, boost business activities and attract more investment in the country.
