ISLAMABAD: International Monetary Fund (IMF) will hold talks with Pakistani authorities on Pakistan’s economic performance in the last fiscal year and federal budget 2010-11.
The IMF mission director for Pakistan, Adnan Mazarei is scheduled to visit Pakistan on July 18 and during his stay in the country, Pakistan’s economic team will brief the IMF director on the budget of the current fiscal year (2010-11).
The key performance benchmark in the budget 2010-11 was the introduction of Value Added Tax (VAT) in integrated form on goods and services. The government has not been able to introduce VAT on goods and services and the reasons would be explained to IMF mission director and proposed plan of introduction of Reformed General Sales Tax (GST) would also be shared with him, said the official sources.
There are a number of formulas being discussed with provinces especially with Sindh so that a workable formula is agreed upon where collection of GST on services on some of the services to be handed over to Sindh. The right of collection of GST on services would be protected as well as the integrated reformed GST is also to be ensured for making it acceptable for Sindh, explained the official source.
IMF mission director would be given a detailed roadmap for the enforcement of the reformed GST from October 1, 2010 and later this would also be shared with IMF authorities at Washington meeting scheduled to be held during August 5-13, sources added.
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