The government is reportedly gearing up for introducing the Reformed General Sales Tax (RGST) from October 1, 2010. However, no final decision should be taken without taking all stakeholders fully into confidence.
 
This was said by Mr.Zahid Maqbool, President, Islamabad Chamber of Commerce & Industry (ICCI) in a statement. He said that the provinces have not agreed as yet on a uniform formula on sales tax collection from services and urged that government should take time to develop consensus of all including business community on this key issue.
 
He said that after the devastating floods, the whole situation has changed in the country and imposition of RGST may bring more miseries, especially for poor people as it will cause great price hike in the country.
 
He also stressed that government should develop a fair taxation system. He said currently industry is carrying the largest burden of taxes, which is unfair. Tax system should be such that every eligible sector should pay its share of tax.
 
He said that development of a fair tax system is the key requirement for removing trust deficit of taxpayers and for promoting a true tax culture in the country.
 
Mr.Zahid Maqbool said that currently taxpayers have many reservations on the utilization of tax revenue as there is no visible spending of tax money on welfare activities of people.
 
He said that tax rates should also be reduced as high tax rate always encourages tax evasion. He said that government should focus on broadening the tax base and remove all exemptions, which is right approach to collect better tax revenue for running its day to day affairs.