Tuesday, March 5, 2024

Senate Rejects Proposal to Slap 17% GST on Gold Jewelry & Formula Milk

The Senate Standing Committee on Finance, which was discussing the Finance Supplementary Bill 2021 for the second day in a row, recently advised that the planned 17 percent general sales tax (GST) on gold jewellery be withdrawn, as well as the proposal to put the same tax on milk formula.

According to representatives from the Pakistan Jewelers Association, the country trades up to 180 tonnes of gold jewellery each year. Nearly 80 tonnes of gold had been smuggled into the country, according to the committee.

Further, the committee suggested that the proposed 17 percent GST on gold jewellery should be scrapped.

Only 54 jewellers were on the active taxpayer’s list, according to FBR authorities, out of 36,000 in the country. They also informed the committee about the strict laws governing gold importation, claiming that the regulations had resulted in smuggling.

Moreover, members of the committee raised serious concerns about the increasing number of unregistered jewellers.

Senator Talha Mahmood presided over the Senate panel discussion. The committee members were irritated by the absence of Minister of Finance Shaukat Tarin and stated the bill should be rejected. Members of Congress and officials from the Federal Board of Revenue (FBR) shared their opinions, observations, and reservations about the bill’s ideas.

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