Finance Minister Ishaq Dar has extended the tenure of Tax Reforms Commission (TRC) for 90 days from February 16, 2015. In this regard, the FBR has issued a notification here Wednesday. Sources said the government had announced constitution of the commission on September 25, 2014. The commission has the mandate to finalise its recommendations in 120 days. Through a notification, the FBR has further extended the tenure of TRC for 90 days.
The National Tax Reforms Commission would submit its practical recommendations to the government before the announcement of federal budget (2015-16). Each recommendation would be backed by rationale and complete implications supported by concrete data. The commission is examining different options and international VAT models for recommending changes in the existing sales tax regime. India has entirely different VAT model. One of the possibilities is that sales tax be collected by both federal and provincial governments at one stage to improve revenue collection.