GST or G. S. T., abbreviation of General Sales Tax or in some parts of the world Government Services Tax is normally imposed on every item of daily life use. Its effects are like reaction of medicines, meaning that when imposed in time and on time, it generates a lot of revenue to Government. But if imposed in wrong manner or at a wrong time results will be vice-verse as public may go against it and may call for strikes and Civil Disobedience, which may include but not limited to stop paying utility bills, stop paying payable taxes.
Recently Pakistan Government has imposed a 1% of GST, which in view looks a very small ratio but when we check it out it opens amazing doors
Like it is 25% of GDP growth of Pakistan.
It is 33% of budget reserved for education.
and there are several other examples, which can be given to prove that as compared to per capita income of Average Pakistani it is a huge ratio as this will not be collected as a whole but it will be collected in parts like
you go to market to purchase 1 kg of sugar and paid amount (which are always adjusted to next nearest zero, e.g, 54.1 to 55) will have included this tax. Aha! here comes the main point. Who paid that 1%?
Sugar Cane producer?
Sugar Mill Owner?
Ex-Mill Purchaser?
Market Broker?
Whole Sale Dealer?
Retailer?
No none of them, it is going to be paid by the end user.
So whenever a manufacturer or producer gets imposed by a tax he adjusts it to next zero, which increases the price-heir, then this process leads to the end of chain, at last the end user pays almost a 3-5 Rupees extra for every purchase of his 100 Rupees in past.
So, what comes next, lets talk about the average income of lower middle class and lower class in Pakistan, (They comprise about 80% of population).
Their average income lies between Rs. 6000 to Rs. 12000, whose mean is Rs. 8500
Oh no! What is this, average daily consumption of Pakistani lower class man is Rs. 320 (320x30=9600), as you can see he s already under debts, how can he afford even this 1% tax.
I'll like to compare here this tax system and Islamic Zakat System
Tax is collected by upper class from poor, using different tactics to meet their (upper class') unnecessary desires e.g., Prados, Land Cruisers, Bullet Proof, Mobile Jammers etc.
While Islam clearly states
Zakat is obligatory on you, it will be collected from your rich and will be distributed among your poor. (Prophet Muhammad S.A.W)
Now coming back to topic, as I have cleared early that this 1% is going to be 5% for consumer
8500*5/100=255
So 9600+255=9855
It will make consumer suffer debts more and more.
At the end I'll just say shame on you, don't you think that poor has right to live. Stop killing poor in sophisticated manner like tax impose.
Lower your standard of living and you will find that there is no need to impose tax on poor.
A shameful statement by Ishaq Dar (Finance Minister of Pakistan) that
This tax will not affect general public in any way.
Has he given an surety that after imposing this tax there will be no increase in consumer products.
I am going to give you just one example.
Today sack of Onion got raised by Rs. 160 (meaning that 160/50kg), I asked the seller why you have increased this much, he replied that all of the following are increased today
GST
Fares
Electricity Charges
Gas Charges
House Rent
Clothings
etc
so I have planned to meet those targets.
See this is going to be imposed on 1 August but they have started to collect money from today.
Even now can Ishaq Dar say this TAX will not affect general public.
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