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15pc GST
likely on import of farm items
ISLAMABAD- The government is likely to levy 15 per cent
general sales tax (GST) on agricultural produce on their
import from the financial year 2002-03. Well-placed sources
told Dawn on Monday that the decision to this effect is
expected to be announced in the budget of 2002-03.
The agriculture produce, which are most likely to be brought
under the GST net included-bulbs, tubers, potatoes, onions and
shallots, garlic, dried leguminous vegetables, shelled,
whether skinned or split, live plants and seeds of vegetables,
fruits and flowers, wheat and oats.
Similarly, the tax authorities are also considering to bring
under the GST net all kinds of seeds-corn seeds, grain sorghum
seeds, millet seeds, sunflower seeds, palm nuts and kernels,
safflower seeds, cinchona bark, sugar beet and sugarcane. On
the other hand, the government was also planning to levy GST
on tractors and tube wells, which may also be announced in the
next budget.
The exercise is a part of the International Monetary Fund (IMF)
conditionalities for getting the next tranche under poverty
reduction and growth facility (PRGF). The sources said that
the government had postponed for the time being the levy of
GST on cooking oil and vegetable ghee, which was due on March
31, 2002, most apparently as this could create any possible
resentment among the masses and go against his future plans.
According to the sources, it is likely that the government may
levy the GST on these products by the end of July 2002.
The Chairman, CBR, told a news conference last month that the
items, which were major source of revenue will be taxed at a
rate of 15 per cent GST in phases at any time as according to
him there was no time frame fixed for the same.
The government had accepted the IMF's conditionality to levy
15 per cent GST on pharmaceuticals, edible oils and
electricity before March-end for getting the PRGF next tranche.
The government had already levied GST on actual price of urea
and on supply, manufacturing, retail and wholesale stages of
all kinds of fertilizers as part of the IMF's conditionalties.
courtesy Daily Dawn, 23
April, 2002
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Pakissan.com;
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