Cabinet set to approve RGST today

The cabinet meeting will consider measures to generate new sources of revenue.—File photo

ISLAMABAD: The federal cabinet is set to approve a revised general sales tax framework on Wednesday. It seeks, among others, withdrawal of exemptions on textile and agriculture sectors. 

"This will be a tough decision for the cabinet because the RGST framework seeks withdrawal of exemptions on the textile and clothing sector, which contributes over 55 per cent in the country's total exports," a finance ministry official told Dawn on Tuesday.

According to him, the International Monetary Fund turned down a request by government for exempting the textile and clothing sector from GST, saying only exports could be exempted from the levy.

Corruption-free tax system primary objective: Shaikh

The Finance Minister instructed FBR to formalize the recommendations for their early approval by the government. - File Photo.

ISLAMABAD: Minister for Finance, Revenue and Economic Affairs Dr. Abdul Hafeez Shaikh said on Sunday that a fair, equitable and corruption-free tax system is a primary objective of the government  The minister said this while chairing a day-long meeting of the Tax Reform Coordination Group (RCG) here.

The meeting was attended by the Members of RCG, Deputy Chairman Planning Commission, Governor State Bank of Pakistan, Secretary Finance, Chairman FBR, FBR officers and Ministry of Finance officers.

Pakistan ready for tax reforms, says IMF

Tax reform is also needed to make the tax system more equitable: Adnan Mazarei.—Reuters

WASHINGTON: Pakistan supports a general sales tax and changes to its energy industry, the International Monetary Fund said on Saturday while reporting on its talks with the country.

The IMF and Pakistan also have agreed on a budget deficit target for the 2011 financial year to help flood victims and reduce inflation, said a statement issued by the IMF headquarters in Washington.

Adnan Mazarei, the leader of an IMF staff mission which held a series of meetings in Islamabad this week, praised the country’s efforts to stabilise its economy.

Crucial talks with IMF, WB put off for three days

The talks have been suspended so that the economic managers could seek President Zardari's intervention in taking difficult economic decisions.—Reuters photo

ISLAMABAD: The crucial talks between the government and twin missions of the International Monetary Fund and World Bank remained suspended for a day on Tuesday and then put off for another two days to seek top level political intervention in difficult economic decisions.

Informed sources told Dawn that the two sides were originally scheduled to conclude on Tuesday, or latest by Wednesday, their negotiations on macroeconomic framework and on a strategy for economic stabilisation and containing the rising fiscal deficit.

VAT draft sent to provinces for consideration

ISLAMABAD: The Federal Board of Revenue (FBR) has sent the draft of the proposed Value Added Tax (VAT) for consideration to the provinces and it would be submitted before the Federal Cabinet for approval by December 31.
 
This was stated by Chairman FBR Sohail Ahmad here Friday, while addressing the business community at the Islamabad Chamber of Commerce and Industry (ICCI).