Government urged to adopt India-style GST simplification
\nISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former vice president Muhammad Ali Sheikh has called upon the government to take urgent steps toward simplifying Pakistan\u2019s Goods and Services Tax (GST) regime on the pattern of India\u2019s bold reform. In a statement issued here today, FPCCI former vice president said that India\u2019s decision to cut down its GST structure from five tax slabs to just two main rates \u2013 5 per cent and 18 per cent \u2013 is a lesson for Pakistan on how to remove unnecessary complications from the tax system and unlock growth. Muhammad Ali Sheikh said that by eliminating the 12 per cent and 28 per cent brackets, India expects reduced compliance costs for businesses, boosted consumption of essentials, and streamlined operations. Early projections already suggest increased consumer spending power and easier tax administration there. Pakistan, he said, should not lag behind and must also move quickly to simplify its own complex GST regime which has become a major impediment for traders and industry. News Desk
\nFPCCI leader noted that Pakistan\u2019s tax system currently imposes a heavy bureaucratic burden on businesses, discouraging compliance and creating loopholes that promote evasion. Simplified GST rates, he argued, would encourage voluntary compliance, cut down on corruption and disputes, and free up resources for productive investment. \u201cWith the economy under stress and fiscal pressures mounting, a cleaner and more predictable tax structure is no longer optional, it is essential,\u201d he said.
\nFPCCI former VP stressed that adopting a two-tier GST model similar to India\u2019s could enhance revenue collection while making essential goods more affordable for citizens. By reducing the cost of doing business, such reform would also stimulate production and job creation, ultimately strengthening the domestic economy. \u201cThe government must recognise that punitive and complicated taxation is hurting both businesses and consumers. We need to restore confidence by introducing a transparent, fair and simple GST regime,\u201d he added.
\nHe urged the finance ministry and the Federal Board of Revenue to immediately begin consultations with trade bodies and experts to design a phased transition to fewer GST slabs, arguing that business confidence and long-term investment will only return if investors see a stable, growth-oriented tax policy. \u201cPakistan can learn from India\u2019s experience that bold simplification brings dividends in the form of higher compliance and growth,\u201d he concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"
Government urged to adopt India-style GST simplification ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former vice president Muhammad Ali Sheikh has called upon the government to take urgent steps toward simplifying Pakistan\u2019s Goods and Services Tax (GST) regime on the pattern of India\u2019s bold reform. In a statement issued here today, […]<\/p>\n","protected":false},"author":2,"featured_media":501527,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-501517","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"\n