Followed by vociferous objections and emphatic ‘no-confidence’ votes put forward by the blatant opposition and sporadic allies, the government called the RGST bill and the flood surcharge bill in to the parliament on Friday.
The initiation of the bill reforms dates back to the Pakistan Development Forum organized in order to draw attention of international donors towards the re-construction of the flood-hit areas of the country.
Features of the GST:
1. Imposition of a uniform GST of 15% on sale and purchase of goods as compared to the present one which is 17% to 25%.
2.Special exemptions and subsidies have been removed on goods related to textiles,carpets,plastics and miscellaneous.
3.The flood surcharge connotes and additional pay of 10% on income tax for the year 2011.
4.Increase in the rate of special excise duty to 2% which was 1% formerly.
Major Objections on RGST:
The foremost point of disapproval between the PPP and the other parties is the tax-collection system operational in the country.The annual corruption reports of the FBR and excise cells working as federal and provincial revenue systems respectively encourage dissatisfaction and disagreement.
The bill has been entitled “anti-people” and “IMF-style designated”. It is believed to create a turmoil of price-hike for the middle-class and poorly of the country. Furthermore, the opposition complains of not building the required confidence between the leading party and the subservient parties.