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50 new services to be brought into GST net

ISLAMABAD (January 31 2004): Taking into account suggestions/identification of all four provinces, the federal government is preparing a list of about 50 new services to be brought into the general sales tax (GST) net in budget 2004-05.

Sources told Business Recorder here on Friday that the 'working group' on extension of GST net, in consultation with the provinces and various departments including Ministry of Finance and Central Board of Revenue (CBR), is actively engaged in the finalisation of the list containing new services for broadening the tax base.

Provinces have submitted their respective lists to the Working Group, which is devising mechanism to bring more service providers into the GST regime.

The authorities may include/exclude any proposed services before the coming budget taking into consideration the overall revenue impact.

Sources said that tax authorities have been assigned the task of calculating expected revenue increase by bringing proposed new services into the GST net.

The government is actively considering to bring the following services into the sales tax net, taking into account recommendations of provinces:

Advertisement in print media; stock brokers; travel agents; services provided or rendered by advocates; services provided by security companies; shipping lines; shipping agents; cable services; broadcasting companies; cargo handling services; service stations; interior decoration service providers (interior decorators); fashion designers; services providers engaged in hire, purchase or sale of moveable or immovable property including property dealers, car dealers, rent estate agents and commission agents; banking and financial services; financial leasing services; leasing of equipment; credit card services; securities and foreign exchange brokerages; asset management; services provided or rendered by construction contractors, architects, town planners, property developers and promoters, real estate, machinery erectors and service and maintenance producers; services provided by chartered accountants, cost accountants, scientific and technical consultant, actuary and tax consultant; port services; freight forwarding agents; indenting agents; manpower recruitment agency; gyms/health clubs; storage and warehousing; market research agency and securities; clearing and forwarding; advisory and auxiliary financial services including investment and portfolio research and advice, advice on corporate restructuring and strategy and provision and transfer of information and data processing.

In addition to these services, provinces have proposed to the federal government to include the following services into the sales tax net:

Medical practitioners and consultants; dry ports; service provided or rendered by pathological laboratories, medical diagnostic laboratories including X-rays, CT scan, M.R. imaging, scientific laboratories, chemical laboratories, electrical and electronic laboratories, and private hospitals; services of video trade; landscape designers; services/supplies by dyers, painters, calenderers; irrigation contractors; transportation services; share depository facilities; film processors; educational institutions having fee structure above Rs 1500 per month; contractors for building, water supply, gas supply and sanity works, roads and bridges, electrical and mechanical works including air conditioning; horticultural works; property developers and promoters; services provided by industrial and manufacturing units and management consultants.

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