Govt increases taxes without passing of budget

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The government on Thursday increased the General Sales Tax (GST) without the passing of the federal budget in the parliament.

In this regard, the Federal Board of Revenue (FBR) has issued a notification.

The government has levied a 240 per cent GST hike in five major export sectors with immediate effect. The GST rate of textiles, leather, toys, garments, surgical instruments and carpets has risen from five per cent to 17per cent.

The increase in taxes is said to be due to a statutory regulatory order (SRO).

Earlier on Tuesday, the federal cabinet had approved the federal budget for the year 2014-15, with a total outlay of Rs 3.945 trillion, and a Public Sector Development Programme allocated at Rs 525billion.

Last year, the Supreme Court had ruled that the government had no legal authority to levy and charge GST without approval by the National Assembly of related proposals made in the budget.