Pakistan Industrial and Traders Association Front (PIAF) urged the government to withdraw 1% increase in general sales tax (GST) that was announced in the federal budget for 2013-14 on Wednesday, saying it will dissipate the impact of other good measures taken in the budget.
In a press statement issued on Friday, PIAF acting chairman Khamis Saeed Butt said the 1% increase in GST would further increase the rate of inflation. He said GST had been increased at a time when all businesses were facing multiple challenges and were fast heading towards default.
“17% GST will not only further increase prices of essential commodities but also put extra pressure on the already taxed people,” he added.
He urged the government to put off the decision and let the economy come out of the woods. Otherwise, he added, the economic situation would worsen, creating trouble for the government.
The PIAF chief suggested the government to chalk out a medium-term plan to support the economy and to give impetus to business activities in the country. For this purpose the government should immediately convene a meeting of all stakeholders, he added.
