Pakistan

RGST: Sheikh fails to win over the Sharifs

PML-N chief links support for new tax bill to good governance.

Irshad Ansari December 11, 2010

ISLAMABAD: The government’s top economic troubleshooter Dr Abdul Hafeez Sheikh has failed to win support of former prime minister and PML-N chief Nawaz Sharif for the reformed General Sales Tax Bill-2010.

Sharif says this will happen only if the government ensures good governance, ends corruption and tax evasion and reduces the size of the federal cabinet. However, he has accepted Dr Sheikh’s request to attend a comprehensive presentation on the issue from the Federal Board of Revenue (FBR).

This transpired in a meeting between an economic team of the government, headed by Dr Hafeez, and the Sharif brothers on Friday in Lahore, sources told daily Express newspaper.

In order to quash misperceptions about reformed GST, Dr Sheikh requested the Sharif brothers to attend a detailed briefing on the issue from the FBR. And the elder Sharif agreed to oblige, sources said.

“Sharif is flexible on this new tax issue,” a member of Dr Sheikh’s delegation told Express newspaper requesting anonymity. “If the FBR team manages to remove Sharif’s reservations, his party may support the reformed GST bill in parliament,” he said.

However, sources said that in the meeting Sharif refused to support the reformed GST bill. Instead he called upon the government to ensure good governance, end rampant corruption and “right-size” the federal cabinet.

Sharif promised support to the government on behalf of his party if it takes these steps for the revival of the country’s ailing economy. PML-N spokesperson Siddiqul Farooq refused to comment on the development. “I’m not aware of any meeting between the Sharif brothers and the federal finance minister,” Farooq told The Express Tribune when contacted on phone.

Published in The Express Tribune, December 11^th, 2010.

COMMENTS (13)

Muneeb | 13 years ago | Reply People don’t know what RGST is.Government has to tell them briefly about it then take it into parliament; politicians are using it for their own agenda and personal popularity. They are misguiding people of country.

Syed Farrukh Hussain Shah | 13 years ago | Reply After wikileaks, everyone should know that our politicians have always two faces,,,one for inhouse/americans and other of general public....but their real face is always been towards americans....I am from Hazara Division, which remains always loyal to Muslim Leaque since partition, and also opted to join pakistan via refrendom in 1947 against the will of ANP who were pro indians.... from that time people of hazara always supported muslim league,,,,recently through 18th amendment, just to have third time permiership Nawaza palyed a historical dirty game with Hazarawals by adopting the name pakhtoonkhawar, in which he snatched the identity of locals, who always supported him unilatarely..... Being the part of this dirty game,,,anything can be expected from him....in public he is opposing RGST, but inhouse he had given green signal to government for its impossing.... Thank you Regards Farrukh

VIEW MORE COMMENTS

Asrar Ahmed | 13 years ago | Reply Mr Nawaz Shariff an dMr Altaf Husain are taking a pro-public stand. People will remember and respect them. RGST is regressive tax. Let there be massive tax reform package where income from all sources is taxed and let there be total re-engineering of FBR.The as part of package introduce RGST By the way Mr Finance Minister,please explain why minimum Income tax of 1 % on turnover was reduced to 0.2% on oil companies and fast moving consumer goods through an SRO, when these very sectors since 1991 till last year where paying 0.5% tax on turnover. Please explain to nation the loss of revenue this SRO reducing tax to 0.2% has cost?

Badar Siddiq Shaheen | 13 years ago | Reply GST was 1st imposed in 1998 by Nawaz govt.the compliance track record in last 12 years is the evidence that in a country like Pakisan where the literacy rate is hardly over 12% there is no way to comply with, becuase the system reqires a complete documetation..Even a small keryana merchant (the retailer)has to make a complete record of his sales and perchases for tax inspectors which he can't do because he can not hire an accountant for this purpose and it will lead to open the new coredors of corruption in the country.On the other hand the history of IMF tells us that this is a very successful tactic to demolish countery's economy as it it was done previously in asian and latin-american countries.

Iftikhar-ur-Rehman | 13 years ago | Reply I am not against RGST but before this is approved by the Parliament, INCOME TAX should be enforced on all the people whose income is more than Rs.300,000 p.a including the agriculturists. Also would like to know how much INCOME TAX has been paid by President, PM ,Dr.Abdul Hafeez Sheikh & Hina Khar in the last 3 years. If they do not pay taxes why should the poor ordinary people pay taxes.

Adnan | 13 years ago | Reply RGST is a bad tax for this country. Compliance cost is very high. Our countrymen cannot understand DST (daylight saving time), how do we expect them to understand GST? Institutions are very weak. If an entity on the chain of compliance refuses to comply or provide documentation, there are not always alternate solutions or any way to force them to comply. This means costs will fall on others. Pakistan needs a simple tax structure that a slimmed down bureaucracy can enforce, not a new gimmick. Complex tax structures will render us further uncompetitive on the world market and leave us to be a nation of shopkeepers living of foreign aid. Anyone supporting this bill has never lived in the real world of business.

Ishaq Jangua | 13 years ago | Reply Nawaz is playing politics - just like he played politics with the Hazara people.

Asad | 13 years ago | Reply Unfortunately, Nawaz is playing politics on the most important issue pertaining to nation's survival. Rejecting RGST on media by elder brother while accepting it in closed doors of CCI meeting by younger brother, hypocrisy and incompetency is clear from both's attitude. The main reason for opposing of RGST by PML-N and MQM is that majority of their donors and senior party members will come under tax net. They are not on the path to save the nation. They are on the path to save their friends. Mr. Sharif.....Grow up now

majid maqsood | 13 years ago | Reply Nawaz Sharif dose the politics on RGST while he knows well RGST is the indispensable for the survival of the country. there is no any else option for strengthening our economy. If Nawaz Sharif is not agreed then Nation has to pay big price on the devaluation and it will lead big inflation in the country.

khan | 13 years ago | Reply it is time for all our countrymen to judge the leaders true character. the people will came to know that which one is the true leader who is sincere to them. the RGST syndrome will prove to be a character test of the political parties. ANP has already shown its face and character and there is no need to comment upon it.they are all sold out. they dot have anything to do with the peoples problems and poverty and price hike.now the future of the poor lies with Nawaz group and Altaf bhai. but i would request Q league to join hands with Nawaz group and Altaf bhai and never ever allow to pass this bloody RGST .if hafeez sheikh is threatening other party leaders of defaault and soaring relations with donors, than no body is responsible but they themselves. and they should face the brunt of the matter now.

Hamza Baloch | 13 years ago | Reply Weldone sharief.

Nizaam | 13 years ago | Reply Nawaz Sharif, Altaf Hussain and the like need to act mature now, quit paying heed to what a private t.v. channel has to say on this serious issue, lend an ear to what FBR officials brief, who actually have a real understanding of this whole matter, for a change.

Dr.Razi uddin | 13 years ago | Reply Is it more difficult for the present so called democraticaly put government,to,cut down their own lavish personel spending each day...than to go so die hard for getting RGST getting support from other quarters...lot of public money is being misappropriated each day...what about those 60million $ lying unspent,meant for flood victims. and now Mr.Presedent in turkamanistan....trying to get some deal on arms and few others done...sure our royal highness doesn't get tired of getting busy in some kind of money deals! There is more...EOBF..millions have been taken from poor workers money for fake projects..so now what is left...why not more..lets have RGST...please Mr.Finance minister sir...try something else!

Replying to X