News
Wednesday, March 02, 2011
Govt mulls new taxes through presidential ordinance* Federal govt likely to impose 15 pc flood income tax surcharge, 2 pc special excise duty through presidential ordinance
By Sajid Chaudhry
ISLAMABAD: Eyeing a stiff resistance from political parties in parliament, the federal government is considering imposing new taxes, 15 percent flood income tax surcharge and 2.5 percent special excise duty, through a presidential ordinance.
Official sources said that withdrawal of some of the key GST exemptions on fertilisers, pesticides, packed milk and dairy products was likely through presidential ordinance.
They added that withdrawal of GST zero-rating on local sales of five export-oriented sectors, textile, leather, carpet, surgical and sports goods, through presidential ordinances and changes in relevant SROs was also expected.
“Presidential ordinance is being considered as the most effective way for imposing new taxes because the authorities strongly feel that the country has to move ahead despite the resistance from political forces in the country,” the sources explained.
They said that presidential ordinance would be promulgated once the ongoing National Assembly session was over. The architects of the plan-B, termed “alternate to the Reformed General Sales Tax (RGST)”, have been finalised at a meeting of the Finance Ministry and the Federal Board of Revenue (FBR), said the sources.
The government had tabled the RGST bill and the Flood Surcharge and Special Excise Duty bills in parliament in latter half of the last year. However, it failed to get it passed from parliament owing to strong resistance from all major political parties.
“Only the RGST became controversial as no-one in parliament objected over the flood surcharge and increase in the special excise duty rates,” the sources quoted FBR Chairman, Salman Siddique, as saying at the meeting.
Courtesy www.dailytimes.com.pk