Pakistan

Pakistan budget introduces GST and excise changes

June 12th, 2014

Pakistan is introducing a number of minor changes to the Goods & Services Tax (GST) and Excise Duty regimes from July 2014. These were announced in the recent 2014/15 budget. Changes include: A simplified GST regime is to be introduced for the retail sector Federal Excise Duty (FED) on goods manufactured or imported into Pakistan …


Pakistan

Pakistan raises GST / Sales Tax on exports

June 4th, 2014

The antiquated Pakistani Goods & Services Tax (GST) regime has drawn fresh criticism with plans to hike the GST / Sales Tax rate on exports from 2% to 5%. Pakistan’s GST regime is due for reform, with the implementation of a full Value Added Tax regime based on OECD recommendations being planned. However, in the …


Pakistan

Pakistan Court attempts to block GST rise to 17%

July 8th, 2013

Following the surprise rise in Pakistan GST VAT from 16% to 17% on 13 June, the Supreme Court has attempted to block the rise. It held on 21 June 2013 that the increase was unconstitutional, and that any funds already received at the new rate should be handed over to the court. A GST rise …


Pakistan

Pakistan budget approved with GST rate rise to 17%

June 19th, 2013

The Pakistan Goods & Services GST rate has risen from 16% to 17% from 13 June 2013. There have been rumours of a Pakistani GST VAT rise for many years, and last week the government was denying any plans. In addition to a rise in the standard rate increase, non-GST registered traders will incur a …


Pakistan

Pakistan new rumours of rise in GST to 17%

June 14th, 2013

A fresh round of rumours has started in Pakistan surrounding a potential rise in the Goods & Services Tax (GST) from 16% to 17%.  There have been many such proposals over the past two years as the country attempts to control its national deficit. In addition to increasing the Pakistan GST rate to 17%, it …


Pakistan

Fresh calls for introduction of Value Added Tax (VAT) in Pakistan

May 22nd, 2013

The influential Pakistan Business Council has called for proposals to replace the current Goods & Services Tax with VAT to be accelerated.  It pointed that there are many holes in the current tax regime, and the tax authorities should consider widening the tax base. Its report discussed the implications for business of the current GST …


Pakistan

IMF and Pakistan clash on introduction of VAT

February 2nd, 2013

Pakistan and the International Monetary Fund (IMF) have clashed on plans to replace the existing Goods and Services Tax (GST) and Value Added Tax (VAT). The IMF is refusing to guarantee future funding towards the reforms of the Pakistan economy unless it agrees to implement a full and ‘pure’ VAT system. Whilst there had been …