The government has constituted a two-member committee comprising Muneeb Zia Advocate and Abrar Ahmed Khan Member Sales Tax/Value Added Tax to draft the reformed general sales tax taking into account resolution of the issue of sales tax on services between the Federation and provinces.
A senior government official told Business Recorder on Thursday that it is an administrative arrangement to initiate drafting of the reformed GST. However, the Finance Ministry/Federal Board of Revenue may increase the members of the committee.
Some of the members of the committee, which drafted the Federal and Provincial Value Added Tax (VAT) 2010, could be included in the committee, if necessary. The VAT drafting team included some of the most experienced and competent sales tax officials, whose contribution can benefit the government in finalising the law pertaining to the reformed GST.
The committee would also take into account the issue of consensus between provinces and federation on the issue of GST collection from services. The issue of distribution of resources collected through services sector among the provinces would also be taken into account by the committee.
A technical committee constituted by Prime Minister Syed Yousuf Raza Gilani will convene an important meeting in coming days to firm up proposals for imposing GST on services. Without evolving consensus between provinces and Federation on sales tax on services, the government cannot finalise draft for imposing GST on both goods and services.
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