The tax authorities on Wednesday informed the Senate Standing Committee on Finance that the government will bear a dint of Rs.45 billion if General Sales Tax (GST) rate reduced from existing 16 per cent to 15 per cent. The meeting of Senate Standing Committee on Finance held here under the chair of Senator Nasreen Jalil to review the Finance Bill 2012-13. The committee informed by the officials of Finance Ministry that major reforms in the General Sale Tax have been proposed for the fiscal year 2012-13 to abolish GST from existing 22 and 19.2 per to 16 per cent. Secretary Finance Abdul Wajid Rana informed the committee that substantial reduction in the existing rate of General Sale tax would lead to decrease the share of provinces in the divisible pool which may not be acceptable to them. He said that out of the total sale tax collection, provinces share is 57.5 per cent which would decline in case of reduction in sale tax rate. Member Inland Revenue (IR) FBR Shahid Hussain Asad said that proposed deduction of one per cent withholding tax from dealers, wholesaler and retailers by the manufactures was considered very important for the documentation of the economy.
