23 June 2010
On 22 June, Finance Minister Dr Abdul Hafeez Sheikh expressed the government’s determination to introduce a reformed General Sale Tax (GST) from 1 October to withdraw exemptions as this would be a significant step towards the documentation of the economy. He assured that the reformed system would not exacerbate inflation as GST would not be applicable on food commodities, health and education sectors.
The finance minister urged all politicians to galvanise on the issue of GST for the economic prosperity of the country. He said that the current system had been distorted by influential lobbies getting unfair exemptions to protect entrenched interests.
Concluding the debate on the budget in the National Assembly, the Finance Minister emphasised that the budget would lower inflation, protect the country, strengthen the provinces and would redirect money to the people and away from the bureaucracy.
