GST and financial services : international practice and difficulties

This article provides a general framework of the theoretical and practical difficulties in imposing a GST on financial services, and examines the international practice in this regard. It also considers the strategies that could be utilized to overcome the existing problems. In particular, the author discusses some unique measures adopted by certain countries in their attempts to ameliorate the undesirable consequences of exempting financial services before examining their treatment in connection with GST-free exports.