The Senate Body directs FBR to take back the GST imposed on Electricity Bills
Senate Standing Committee for Finance Revenue and Statistics yesterday mentioned Federal Board of Revenue (FBR) to withdraw general sales tax (GST) on all household electricity bills for public relief.
Majority of Pakistan comes from poor and lower middle class is under the burden of huge indirect taxes imposed in the form of GST and other taxes, said Senator Col (R) Tahir Hussain Mashaddi.
He further added that people must be given relief in electricity bills as GST on household electricity bills remain unjustified.
Meeting of Senate Standing Committee was called upon by Chairman, Senator Saleem Mandviwala.
Col (R) Mashaddi indicated FBR to upheave their direct taxes by collecting it from upper class having huge income and provide maximum relaxation to the common man. He presented this plan against the unfair GST figure of 17 percent for electricity bills.
Chairman FBR, Nisar Muhammad Khan informed the Senate Standing Committee that the Federal Government has a vision of bringing reforms and is working with a strategy of the taxation system.
0.4 percent withholding tax on each banking transaction above 50,000 is one of the major steps to bring maximum people into the tax net.
He further highlighted that an increase in ratio of direct taxes from 38 percent to 41 percent is made possible by the tax reforms implemented under this government.
Secretary Finance, Waqar Masood further added his point in front of the Committee that the profitability rates on national saving schemes were cut short by the government due to the new policy rates set by the State Bank of Pakistan.
Higher rates are still being offered on saving schemes in comparison to market rate, He said.
Behbood and pensioners schemes are offering 9.12 percent profit.
Senator Kamil Ali Agha favored saving schemes as they are on the prior benefits of the government. The public must not be discouraged to invest in saving schemes by minimizing profit ratio.
Senator Ilyas Ahmed Bilour, Muhammad Mohsin Khan Leghari, Sardar Fateh Muhammad Hassani, Islamuddin Shaikh and others were also present in the Senate Standing Committee.