<h1>General Sales Tax increases poverty; reallocate fiscal space to targeted cash transfers and social spending urgently.</h1> General Sales Tax (GST) is the largest marginal contributor to poverty in Pakistan, accounting for over seven percent of households' pre-tax expenditure and disproportionately impoverishing poor and vulnerable households. In contrast, the Benazir Income Support Programme's monthly cash transfers have the largest marginal impact in reducing inequality. The World Bank recommends improving domestic revenue mobilisation and public expenditure efficiency to create fiscal space, then prioritising expanded social spending and targeted transfers, while correcting a tax-expenditure mix that emphasises regressive indirect taxes over progressive direct taxation.