The federal government may implement Reformed General Sales Tax on goods and services beyond October 1, 2010 in view of the necessity of parliamentary approval of the levy from the National Assembly and provincial assemblies. Sources told Business Recorder on Wednesday that the legislative process for introducing the Reformed GST would require some more time.
There are changes that the implementation of the Reformed GST may take few more weeks and it could be introduced before November 1, 2010. Taking into account legislation of reformed GST, the implementation of the reformed GST may be done during October 1-November 1, 2010.
According to the Record Note on the implementation of the Reformed GST, a technical committee to be chaired by Federal Finance Secretary and comprising of at least one expert from each province as well as nominees of FBR shall examine each of the services against the agreed benchmark and mutually decide accordingly. The committee shall function as a standing committee and would submit its first report by 15th of October, 2010 to enable the provinces to draft their respective Laws. The entire exercise of drafting of federal and provincial Laws shall be completed by 22nd October 2010.
The Finance Minister has already indicated that a fresh Bill on Reformed GST would be submitted to the National Assembly for formal approval. Draft of the legislation of reformed GST on goods would be submitted to the national as well as it would be got approved from Standing Committees of Senate and National Assembly on Finance.