Pakistan, June 3 -- ISLAMABAD - Starting July 1, 2025, all four provinces in Pakistan must obtain cabinet and assembly approvals to collect General Sales Tax (GST) on services based on a negative list, in line with commitments made under the IMF-backed National Fiscal Pact (NFP).

Currently, provinces collect GST on services using a positive list approach. However, from the upcoming fiscal year 2025-26, this system will shift to a negative list, meaning all services will be taxed unless specifically excluded. This move aims to enhance transparency and curb tax evasion across the country.

Under the pact, provinces must meet six major conditions. One of the most crucial is to set up a mechanism to begin collecting Agriculture Income Tax (A...