New Bill proposes GST on medicine and telephone services

The Government has introduced a new Bill at the People’s Majlis proposing to levy 6 per cent Goods and Services Tax (GST) on medicine and telephone services. These were listed among essential goods and services not to be subjected to GST, when the Act on GST was passed in August this year.

The new Bill proposes to impose GST on medicine and telephone services starting from the coming January. The Bill was sent to the Majlis last month.

The new Bill also proposes to include onions and potatoes in the list of goods to be taxed. These two items were also in the non-taxable list when the original Act on GST was passed.

Minister of Finance Ahmed Inaaz said that the budget proposed for the year 2012 was at a deficit by 9.7 per cent and that the deficit could only be managed by increasing tax income. He also said that the government can avoid resorting to T-Bills too with additional income from taxes.