WEB DESK: Political leaders of the Haqooq-i-Khalq Party (HKP) and Pakistan Awami Tehreek (PAT) have strongly opposed reported proposals to raise the General Sales Tax (GST) from 18 percent to 19 percent under IMF-linked reforms, warning it would intensify inflation and further burden low-income households.
HKP Criticises Indirect Taxation
HKP chief Farooq Tariq said the move would hit workers, farmers and salaried classes the hardest, arguing that indirect taxation is already unfairly squeezing the poor while wealthy corporations evade billions in taxes. He urged the government to prioritise recovering outstanding dues from major corporate sectors instead of increasing taxes on essential goods.
Criticising proposed taxes on hybrid and electric vehicles, HKP leaders said such measures would discourage green transport and worsen environmental challenges. They also called for shifting towards a progressive tax system focused on wealth, property and corporate profits, while reducing GST on basic items.
PAT Rejects ‘Borrow-and-Govern’ Model
Separately, PAT leaders rejected what they called a “borrow-and-govern” economic model, demanding relief in fuel prices and proposing a 10-year agricultural emergency with subsidies and interest-free loans for farmers to strengthen the economy.
Broader Context
The proposed GST hike is reportedly part of broader tax reforms being discussed with the International Monetary Fund under Pakistan’s ongoing loan programme. The government has been under pressure to increase tax revenue and reduce the fiscal deficit, but opposition parties argue that raising indirect taxes disproportionately affects lower-income segments of society.
Demands for Progressive Taxation
Both parties have called for broadening the tax base by bringing wealthy individuals and corporate sectors into the net, rather than increasing the tax burden on essential goods and services that affect everyday consumers. They have also demanded transparency in government borrowing and spending, arguing that sustainable economic growth requires structural reforms rather than regressive taxation.
The government has not yet officially confirmed the proposed GST increase, but sources indicate it is under consideration as part of the upcoming budget for fiscal year 2026-27. Opposition parties have vowed to resist any such move through parliamentary and public campaigns.
