‘GST critical to restoring the country’s fiscal health’

Farah: If not 6%, the GST rate should be at 4%, which will allow for net tax collection.

THERE is renewed interest in the possible resurgence of the goods and services tax (GST) as the government is focused on expanding its tax base and diversifying the tax revenue stream to rebuild the fiscal space.

The country’s fiscal deficit is expected to consolidate further to 5% of gross domestic product this year.Ultimately, the government aims to achieve fiscal sustainability with a fiscal deficit of 3% or lower. This is one of the seven medium-term benchmarks set by the government under the Madani Economy recently.