ISLAMABAD: Federal Minister for Finance Hafeez Shaikh said the reformed General Sales Tax (GST) would not be a catalyst for further inflation in the country.
“The RGST will not trigger inflation; no government wants to compound problems for its citizens”, Hafeez Shaikh said while talking to reporters after attending the meeting of the Senate Standing Committee on Finance, here on Monday.
When queried on whether the bill would encourage corruption and the pressing need for reforms in the tax collecting machinery, the minister admitted that corruption existed in all departments of the government.
“When the incidence of corruption is widespread, the FBR cannot remain untouched by it.
The government will address the issue, but let the GST become established and the situations become more stable. The strategy to contain the virus of corruption will be evolved accordingly and deployed in the fullness of time”, Hafeez Shaikh reasoned.
Earlier, speaking during the meeting of the Senate Standing Committee onFinance, Hafeez Shaikh said the government was coming under fire for the introduction of sales tax. “The government has not introduced sales tax, it was already present; the government’s sole objective is to improve the taxation system in the country.
We are introducing reforms to make the system more efficient and broad-based”, Hafeez Shaikh claimed. Questions pertaining to the constitutionality of the bill will be adressed in the meeting today, he said.
The meeting will continue for more two consecutive days, as officials deliberate on the implications of the reformed General Sales Tax and Finance Bill.
