Effects of Reformed GST on Common Man,

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I Want to share the effects that the Reformed GST would have on the common man in Pakistan. As you all know that vendors, producers, manufacturers have already increased prices of all basic necessities such as rice, flour, meat, milk by 20-50% during the last 6 months. According to a report, prices of all commodities during September 2010 have increased by 56% as compared to September 2009 and this price hike is endless.

Here is an illustration of as to how a common man is going to be effected by GST.

Yesterday I went to Metro and purchased goods worth Rs. 1525. 17% GST was applicable on only a few items amounting to 28 Rupees. However when reformed GST is going to be implemented, the GST would amount to 275 rupees as it would be applicable to all items that you commonly use in your daily lives.

So if your monthly expenses are Rs. 10,000. After the implementation of reformed GST, your montly expenses would increase to 11,800. You will pay 1800 Rs. tax to government just for using basic necessities.

Similarly if your montly expenses are Rs. 20,000. After GST your total expenses would be 23600. You will pay 3600 Rs. tax to government just for using basic necessities.

and so on......

I am not against taxes. We all should pay taxes. What strikes badly is the misuse of taxes !