Dossier
General Sales Tax (GST)
Coverage of General Sales Tax (GST) in the Nexus archive.
Punjabplace1Sindhplace1Balochistanplace1Khyber Pakhtunkhwaplace1Infrastructure Development Cess (IDC)topic1IMF-backed reformstopic1telecommunication sectortopic1Toyotaorganization1Hondaorganization1Indus Motor Companyorganization1Honda Atlas Cars Limitedorganization1Auto Policy 2026-31topic1hybrid vehiclestopic1Muhammad Aurangzebperson1Asad Aliperson1National Tariff Policy (NTP) 2025-30topic1
- Sales tax masks provincial collection weaknesses
Provincial tax collections in Pakistan show significant disparities, with Punjab most dependent on GST at 69.6%, while Sindh's revenue is more diversified due to trade-related taxes like Infrastructure Development Cess. Despite reforms expanding taxable services, revenue mobilization remains weak in property, stamp duty, and vehicle taxes, particularly in Sindh.
- GST hike pushes up hybrid vehicle prices
A GST hike to 25% on hybrid vehicles has led Toyota and Honda to increase prices by over Rs1.3 million, while other assemblers have paused invoicing and deliveries. The Auto Policy 2026-31 remains unannounced despite the expiration of the previous policy on June 30.