Islamabad: The government is considering raising the General Sales Tax (GST) rate to generate an income of 650 billion rupees.
In the upcoming mini-budget, the government plans to generate approximately 650 billion rupees by strictly enforcing measures against non-filers and low-filers, increasing the withholding tax rate on properties, and raising the GST rate on items such as tractors.
It remains to be seen how much revenue will be generated from enforcement actions and how much from additional taxation measures.
The government has also agreed with the IMF to raise property value tables in 42 cities by the end of September 2024, allowing the FBR to notify the new rates in the coming weeks.
The FBR has rejected the proposal to increase the standard GST rate from 18% to 19%, but the GST on lower-taxed items, including tractors, may be raised.
Regarding withholding taxes, the government is considering increasing the rate on the buying and selling of properties.
