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.

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).