Federal Govt to Remove GST under CEM on Banking, Telecom and Insurance

The federal government from next budget would remove the general sales tax (GST) under Central Excise Mode (CEM) on banking, telecommunication, insurance etc, as the National Finance Commission (NFC) has defined the three sectors as services and not goods.

Also, the federal government, with the consensus of all stakeholders of the 7th NFC Award, has devised a formula to determine the level of poverty and backwardness so as to distribute 10 percent allocated share of the divisible pool under the same head.

“The federal government would remove excise on telecommunication, banking, insurance etc from next budget,” Dr Kaiser Bengali, Sindh’s representative in the NFC told the Sindh Assembly in a presentation on “Decisions: 7th NFC Award”.

Dr. Bengali told the provincial legislature, which assembled at Assembly Secretariat under the chairmanship of Speaker Nisar Ahmed Khuhro wearing the traditional Sindhi Cap, that the NFC had recognized that the GST on services was a provincial subject under the constitution and the provinces may collect this tax if so desired.

Via Business Recorder

  • But you forgot to mention that they are going to apply it with another name and provisions. So net net impact would be cancelled out

    • i suppose they will replace GST with VAS charges, to chahy to kaan right hand say pakrain ya left pakrany to kaan he haain na

      hope they will reduce some percentage for the ppl who are using the services

  • this will never happen…
    this is Pakistan man…

    this is provincial choice so only sindh has requested a thought on it..if they will remove, they might only in sindh… not on other provinces..

    and this will never happen…No Never…

    Zardari ko paisa kon de ga…abhi to Bhakhtawar Bhutto Zardari ne bhi humare mulk ko lootna hai…

    you might already know Zardari has Bought big part of Islamabad un Bakhtawar Bhutto Zardari’s Name for only few rupees…

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