Taxation Policy is very important for the economy of any country. Implications of trade liberalization in Pakistan have become the major reason of reduction in tariff and increase in General Sales Tax(GST). Donor organizations like International Monetary Fund (IMF)have one debt condition to increase GST, which is increasing the economic problems of common people and discrimination of wealth. Growth of GST has a conflict with the teachings of Islam. The existing system should be revised in the light of Quran and Sunnah. The objectives of this research paper are to analyze the major factors behind the increasing GST, impact of GST on public and to analyze GST in the light of Islamic teachings. This research paper will follow the descriptive and analytical methods. The primary value of this paper lies in portraying the main factors of increasing GST and its conflict with the teachings of Islam.