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GST on small traders from July 1

IKRAMUL HAQ

ISLAMABAD: Finance Minister Shaukat Aziz on Friday said that the general sales tax (GST) on small traders would be fully implemented in the next budget. He said it would be practical, understandable and livable for the trading community.

Talking to economic correspondents, the minister said a senior member of the Central Board of Revenue (CBR) was consulting all the associations and groups of small traders and retailers with a view to arriving at mechanism and modalities of the GST.

He added that the nation is to be imbued with tax culture "If we do not get tax, the country cannot survive," he stressed.

Talking about the GST on retailers, he assured it would be as painless as possible and the retailers would not be put to difficulties.

"That's what the senior member of CBR, Riaz Malik, is discussing with various bodies in different cities."

He was happy to note that some trade bodies have appreciated the efforts of the government, like the powerloom sector in Faisalabad.

According to him, tactical issues were being discussed with the traders. One such is the gross profit rate.

Responding to a question, he said that the GST for the retailers would be enforced from July 1, this year.

Asked about GST levy on services, the minister said that the matter is under consideration.

The GST on services like doctors, professionals, engineers, etc. too has been hanging fire for the last few years. In the previous regime, the provincial governments were asked to study the issue and come up with their proposals.