ISLAMABAD, June 10: The tax authorities have proposed to the government to bring in 6 to 15 new services under the General Sales Tax (GST) net from the next financial year.
Well-placed sources told Dawn on Thursday that the services would be finalized for the purpose of levying of GST in the cabinet meeting scheduled for Saturday.
Sources said the services would be selected from the list already finalized by a committee constituted by Central Board of Revenue (CBR) for this purpose. The tax authorities have recommended two methods for levying GST on the proposed services from the next fiscal.
The government has been proposed to directly levy the standard rate of 15 per cent GST or impose indirect GST on goods used in the supply of these services. The sources said that final decision to this effect would be taken in the next two days.
The CBR, sources said, has already turned down the proposals of four provinces to bring in more than 50 services under GST net. The provinces have submitted their lists of services to the government what they wanted to bring them under the GST net for having more share in the NFC award.
To consider the proposals, the sources said, the CBR has constituted working group on extension of GST for broadening the tax base. According to the sources, the committee proposed that only those services would be brought under the GST net which were having some documentary records.
The sources said that the committee had worked out the revenue impact of around 10 services which could generate revenue for the national kitty. Currently GST were collected only on 12 services, added the sources.
Similarly, the sources said that the tax authorities were also working on a proposal to compile all rules in respect of services sector in a single SRO to facilitate the taxpayers.
It was observed that currently rules for each service was placed under separate circular or notification, which was creating problems for the taxpayers. The compilation of all these rules in a single SRO would facilitate the taxpayers, added the sources.
