Standard rate of GST to be levied on 21 new services

SOHAIL SARFRAZ

ISLAMABAD: The federal government has decided to impose a standard rate of sales tax on 21 new services provided within the jurisdiction of Islamabad Capital Territory (ICT) and Balochistan in budget (2015-16).

It is learnt that after 18th Amendment, powers to collect and levy sales tax on services were delegated to the provincial governments and subsequent Sindh, Punjab and KP have established their independent sales tax collection authorities within their provinces and scope as services were expanded enormously. The provincial government has brought new services within the ambit of sales tax. However, provincial government of Balochistan has not yet made such arrangement, likewise scope for levy of sales tax collection on Islamabad Capital Territory also rest with federal government.

Therefore, Federal Government now intends to expand the scope of sales tax on services which are yet in their control in line with the prevailing sales tax laws in different provinces.

Sources said it is one of the revenue generation measures to be announced in budget (2015-16).

The services likely to be included through provincial ordinance are: travel & recruitment agents; share transfer/depository services; business support; fashion designers; property developers; various consultants; motels, guest houses, marriage halls /lawns; property developers and promoters; freight forwarders; construction; software/IT development and security agencies.