Open AccessReformed GST: Challenges and Opportunities (PANEL DISCUSSION-II)
Author(s) -
Abrar Ahmad Khan
Publication year - 2010
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v49i4iipp.759-759
Subject(s) - taxable income , taxpayer , spare part , government (linguistics) , tax law , business , economics , law , law and economics , public economics , tax reform , accounting , macroeconomics , political science , operations management , linguistics , philosophy
Reformed GST as you know is a law which we have introduced inNational Assembly. Its main features are that we are proposing minimumexemptions because our present law gives lot of exemptions. The secondbasic thing is about zero rating. Presently we have zero rated evendomestic supplies for five exports sectors and even others sectors also.We are restricting zero rating for exports only and for domesticsupplies it will be taxable. The third major thing is that we areincreasing registration threshold from Rs 5 million to Rs 7.5 million.This proposal will spare smaller tax payers from incurring thecompliance cost related to keeping of records and filing of returns.Then the fourth major change in the new law is that buyers have to givetheir CNIC or NTN to the sellers. This provision will help in keepingsmaller taxpayer outside tax net and bringing bigger ones in tax net.Then there are lot of distortions in the existing law in the form ofspecial schemes and fixed tax schemes. These schemes will not be part ofthe new law. The new law has been discussed in Senate’s FinanceCommittee where there have been objections about certain provisionswhich have been considered as very harsh and government has promised toconsider softening them.