The National Tax Council (NTC) does not have the same constitutional coverage as the General Sales Tax (GST) Council in India. Therefore, the status of the NTC is no more than a forum for discussion.
According to provincial tax administration, the first target set for the National Tax Council (NTC) was an agreement on a common definition of “goods” and “services”. He added that if the formation of the council has been challenged in a court of law, no one has a definite idea of the final fate of the whole affair.
According to Business Recorder report, the NTC is modeled on the GST Council in India. In India, the GST Council constituted on September 12, 2016 under Article 279-A of the Constitution. Oddly enough, there is no such legal coverage available to the National Tax Council (NTC) in Pakistan.
Difference between the FBR and the provincial tax administration
According to informed sources, the situation is moving towards a far-reaching solution. The biggest dysfunctional businesses and consultants are taking advantage of this uncertainty. As they are all thriving at the expense of national instability. Meanwhile, he said that there is silence among tax intellectuals on the issue. Despite the fact that it was a major national debate on tax coherence. Sources said that there is a sharp difference between the Federal Board of Revenue (FBR) and the provincial tax administration as the FBR has set its own definition of restaurant services and has reduced the tax rate to 7.5 per cent so that the offer Restaurant owners, on the other hand, in the provinces, especially in Punjab, have come up with a counter-measure of 5% tax rate if payment is made by debit or credit card.
Similarly, Khyber Pakhtunkhwa witnessed a series of lawsuits. As the FBR continued with unprecedented tweaks to judicial interpretations and legislative interventions. Interestingly, one of the pre-18th Amendment decisions of the Peshawar High Court clearly supported the FBR. Similarly, the service sector of construction, tool manufacturing, transportation of oil and fashion designers, etc. has also gone beyond its jurisdiction.
The FBR spokesman said that since these sectors are mainly in commodities. The provinces are not in a position to legislate in these areas in the light of entry 49 of the Fourth Schedule to the 1973 Constitution. It’s like rewriting the constitution and the 18th amendment.
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Is there GST in Pakistan?
The term “taxable supplies” refers to supplies of goods and services and to imports that are liable to sales tax. The following are the sales tax rates: Standard rate for goods: 17% and Standard rates for services: 16%, 15% and 14%.
Liability to Pay the Tax
The liability to pay the sales tax in case of goods being supplied lies upon the consumer whereas the liability to pay the sales tax of imports lies upon the importer according to section 3 of the Sales Act 1990.
Sales Tax | Provincial Sales Tax | FBR | Federal Board of Revenue | 18th Amendment |