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5% sales tax on second-hand and worm clothes !

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Tax collection in distress: FBR imposes 5% sales tax on second-hand and worn clothes



576198-cloth-1373650975-804-640x480.jpg

A desperate federal government has imposed 5% sales tax on import and domestic supply of second-hand and worn clothes, which are largely consumed by poorest of the poor.

To give effect to the decision, the Federal Board of Revenue (FBR) issued a notification here on Friday. According to the notification, sales tax at the rate of 5% will be charged and collected both on import and domestic supply of second-hand and worn clothing.
Second-hand clothes are used by the poorest class of the country, particularly in winters. The move has again raised questions over the government’s policy that has so far hurt the lower and middle classes and given relief to the rich.
Former finance minister Dr Hafiz Pasha has termed the government’s policy anti-poor and pro-rich. In the budget, the government cut the income tax on asset management companies by 10% to 25% but increased the sales tax by one percentage point to 17% that has affected every citizen irrespective of his social status.


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Tax collection in distress: FBR imposes 5% sales tax on second-hand and worn clothes – The Express Tribune
 
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In all fairness, this loophole of importing Old / used/ Scrap/ Re cycle able stuff has immense loopholes.

The product imported brought at less than throwaway prices.

This advantage is not passed on to the buyer. Furthermore, under the garb of old/ scrap goods a lot of serviceable stuff gets in.

There was a time in India in late 90's when almost all Jeeps & Cars in N India had been retrofitted with diesel engines imported in as scrap.

The same went for apparel.
 
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In all fairness, this loophole of importing Old / used/ Scrap/ Re cycle able stuff has immense loopholes.

The product imported brought at less than throwaway prices.

This advantage is not passed on to the buyer. Furthermore, under the garb of old/ scrap goods a lot of serviceable stuff gets in.

There was a time in India in late 90's when almost all Jeeps & Cars in N India had been retrofitted with diesel engines imported in as scrap.

The same went for apparel.

totally irrelevant post.
 
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Why don't they start with the likes of Hina Rabbani Khar and Co and make them pay income tax that runs into hundreds of thousands of dollars? But then one can't ruffle pretty feathers and the feudal overlords who refuse to pay tax. It's easier screwing the poor as they have no say.

Way to go!
 
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Tax collection in distress: FBR imposes 5% sales tax on second-hand and worn clothes



576198-cloth-1373650975-804-640x480.jpg

A desperate federal government has imposed 5% sales tax on import and domestic supply of second-hand and worn clothes, which are largely consumed by poorest of the poor.

To give effect to the decision, the Federal Board of Revenue (FBR) issued a notification here on Friday. According to the notification, sales tax at the rate of 5% will be charged and collected both on import and domestic supply of second-hand and worn clothing.
Second-hand clothes are used by the poorest class of the country, particularly in winters. The move has again raised questions over the government’s policy that has so far hurt the lower and middle classes and given relief to the rich.
Former finance minister Dr Hafiz Pasha has termed the government’s policy anti-poor and pro-rich. In the budget, the government cut the income tax on asset management companies by 10% to 25% but increased the sales tax by one percentage point to 17% that has affected every citizen irrespective of his social status.


more

Tax collection in distress: FBR imposes 5% sales tax on second-hand and worn clothes – The Express Tribune

Are GOP ministers are nuts:hitwall:
instead of implementing tax on second hand clothes they can promote garment factories to increase competition to reduce price & block loopholes to increase income. But instead of blocking loopholes of current taxation system they imposing new foolish taxes on people.:cuckoo:
 
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Sales tax must be levied even its a resale only excise can be exempted.
 
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Are GOP ministers are nuts:hitwall:
instead of implementing tax on second clothes they can promote garment factories to increase competition to reduce price & block loopholes to increase income. But instead of blocking loopholes of current taxation system they imposing new foolish taxes on people.:cuckoo:

poor cannot complain much, they can be threatened, beaten or tear gassed, even locked and killed, but the rich if taxed would cause them cracks in their own ranks.
 
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poor cannot complain much, they can be threatened, beaten or tear gassed, even locked and killed, but the rich if taxed would cause them cracks in their own ranks.

This policy make a silent typhoon which is kept in a bubble & when this bubble burst then is could become another French type revolution.
 
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O yar koi had hoti hai...ab landay say kaun kapray leta hai? Even a monkey knows...

Shabash Nawaz kingo.
 
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In all fairness, this loophole of importing Old / used/ Scrap/ Re cycle able stuff has immense loopholes.

The product imported brought at less than throwaway prices.

This advantage is not passed on to the buyer. Furthermore, under the garb of old/ scrap goods a lot of serviceable stuff gets in.

There was a time in India in late 90's when almost all Jeeps & Cars in N India had been retrofitted with diesel engines imported in as scrap.

The same went for apparel.

We have the seperate policy for importing scrap metal or automobile and FED/tax is charged accordingly, the case here is of seconf hand clothes only
 
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Next step, they will put GST on used underwears too.
 
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Lunda baazar ke kaproon per bhi tax? Had he yaar!
 
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