Consensus on GST on services collection: last-ditch bid by Finance on Saturday

The Finance Ministry will make last-ditch effort to evolve consensus among provinces on levying GST on services and allowing the Centre to have the right of collection, it is learnt. Sources said that another meeting between the Centre and provinces would be held on Saturday as the previous meeting on May 23 remained inconclusive because NWFP and Balochistan were not supportive of GST on services at this point and time due to prevailing situation in their respective provinces.
When contacted, an official of Finance Ministry confirmed about the scheduled meeting on Saturday. He said that the government was expecting Rs 300 billion through this tax, and wanted consensus before budget. The Ministry wants guideline and full political backing on this issue in the wake of expected reaction from lawyers and doctors and others on GST charges.
As the budget date is fast approaching, the Finance Ministry is striving to persuade the provinces to allow federal authorities to collect this duty, on their behalf. Sources claimed this has been the reason for extension in budget date, to allow some more time to the Finance Ministry to work on the issue, and achieve the desired results.
Prior to the next meeting, sources said, the Finance Ministry would involve the political leadership to resolve the matter amicably. The Finance Minister has already announced to broaden the tax base by bringing in two new sectors, and services would be one of them, to bridge the galloping revenue and expenditure gap.