The computer industry, particularly vendors/importers, have outrightly rejected the ‘Reformed General Sales Tax Bill 2010′, which would not only substantially raise the prices of computer equipment and machines but would also increase the cost of doing business.

This was stated by Munawar Iqbal, central president of Pakistan Computer Association (PCA), on Sunday while talking to a delegation comprising members of the association from Lahore and Peshawar Chapter.

He said that imposition of Reformed General Sale Tax regime under prevailing business conditions would have a devastating impact on overall business activities in the country. The government ought to have detailed deliberation with all stakeholders from trade and business community to evaluate impact and implications of RGST, he added.

He said that the post-floods scenario in the country also suggested that the government should have seriously considered deferring imposition of RGST. “Following devastating floods, this tax will put more strain on businesses, general public and the economy,’ headded.

Munawar said that developmental projects are essential for the future of Pakistan and any cut from this sector would hamper the development and economic growth of the country. He added that such measures would also harm the business activities as economic growth would cease if proper infrastructure is not developed.

The PCA president said that inflation has already gone quite high and the prices of all basic items have jumped unprecedentedly. The phenomenon, he said, has resulted in huge sufferings for poor people and imposition of reformed GST would bring a new flood of price hike and inflation.

He said that people belonging to lower strata of the society are struggling for survival due to devastating impacts of floods. They will not be able to pull on with life. He urged the government to immediately defer the levying of RGST and start consultation with business community of the country for finding more suitable and mutually agreeable options to improve tax revenue.

Author: Bilal Ahmed

Bilal Ahmed is the Authour of Techpakora. He loves to know lattest info regarding telecom industry that is the reason for writting this Blog. If you like this article then post you valuable comments.You can follow him on Facebook and Twitter.

Computer Industry Rejects RGST Bill