ISLAMABAD, June 10: The Central Board of Revenue (CBR) will raise more than Rs23 billion in revenue under the new general sales tax (GST) measures announced in the budget, which will increase the price of goods.
Talking to reporters here on Sunday after the post-budget press conference CBR Chairman Abdullah Yousuf said the new measures will help achieve the ambitious target of Rs1,025 billion set for 2007-08.
He said the total revenue measures taken in the budget would help in generating Rs44.5 billion. “We would generate the remaining revenue by enhancement of tax base, audit and through increased economic activity,” he added. Answering a question, Abdullah said that through one per cent levy of surcharge on importable goods Rs13 billion will be generated for the national exchequer. However, he clarified that it would be levied on the import value of the goods.
He said that an additional amount of Rs10 billion would be generated from other measures taken under the customs head.
In response to a question, the CBR chief said that a flat rate of 1 per cent will be applicable on export of all products. Earlier, there were four slabs for different exportable products. He said that major beneficiary of this decision would be the textile industry, which he said constitutes over 60 per cent of total exports.
He said the imposition of 5 per cent withholding tax on the local purchase of vehicles would also generate additional Rs3 billion. However, he said this tax is adjustable if the taxpayer files an annual return with the income tax department.
