ISLAMABAD (May 17 2003) : In order to keep uniform policy of 20 percent GST intact, the Central Board of Revenue (CBR) would not slash general sales tax (GST) rate from 20 to 15 percent for only one specific sector in the budget 2003-2004.
In case the CBR finalise the names of specific items to be brought down from 20 to 15 percent, the amendment in the relevant SRO would be made in the budget 2003-2004.
The officials engaged in the budget exercise told Business Recorder here on Friday that if the CBR curtails 20 percent GST rate to 15 percent for the ship-breaking industry then the reduction would also be extended to all other sectors liable to 20 percent GST including steel sector.
The authorities could not bring down the rate of tax for only one industry.
Presently, three major industries are liable to 20 percent sales tax and any move to curtail rate from 20 to 15 percent would be enjoyed by all.
They said that the government has to implement a uniform policy for all industries.
The CBR could not afford to extend concession to a single industry as this move could agitate sectors liable to 20 percent GST.
They added that the CBR, if required, would move the proposal to the Ministry of Finance to finalise downward revision from 20 to 15 percent for all relevant sectors.
The tax authorities made several amendments in the SRO dealing with 20 percent GST items to include/exclude certain names in the past.