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+--- Thread: Reformed Genaral Sales Tax (/thread-reformed-genaral-sales-tax)
Reformed Genaral Sales Tax - olympia - 12-15-2010
What is the rate of RGST as i know RGST is 17% & SED is 1%, could we adjust RGST & SED or not?
could someone explain the features of RGST.....
- KAP911 - 12-22-2010
âX GST will replace the existing regimes of sales tax and excises on services.
âX GST will apply on both at import and local supply stages.
âX Standard rate of 15% has been proposed instead of the present rate of 17% or multiple other rates going upto 25%.
âX There shall be no fixed tax, reduced tax, enhanced tax, retail price-based tax or special tax scheme under the new GST system.
âX A uniform enhanced annual exemption threshold of Rs.7.5 million (which is presently Rs. 5 million) shall be applied to keep small businesses including small traders/retailers/cottage industry out of mandatory tax compliance.
âX All exports shall be zero-rated.
âX Input tax adjustment of both direct and indirect constituents shall be allowed on ¡§totals¡¨ basis (excluding entertainment and non-business use passenger vehicles).
âX Sales tax on goods and services where so authorized by the Provinces shall be mutually adjustable so that double taxation does not occur.
âX No general zero-rating shall be admissible on any commercial form of domestic supply or on any local consumption.
âX The GST system will work purely on ¡§self-assessment and self-policing¡¨ basis.
âX Cash flow of businesses shall be facilitated through expeditious centralized (Electronic) refund payment system.
âX Tax compliance shall be encouraged through transparent and fair audit system with increased use of modern information technology.
âX Adjudication, appeal and alternative dispute resolution (ADR) systems have been provided as before.
âX FBR will issue simplified rules to regulate the GST procedures and processes.
âX The GST Bill 2010 shall take effect from such date as may be notified by the Federal government.
âX The new GST system will be applied in FATA/PATA, the Province of Gilgit-Baltistan and AJ&K in due course.
- olympia - 12-23-2010
Round about 569 new items are inserted as taxable items.