WB delegation arrives

Delegation of the World Bank, headed by Carlos Silvani, arrived in Pakistan on Wednesday.

ISLAMABAD: A delegation of the World Bank (WB), headed by Carlos Silvani, arrived in Pakistan on Wednesday. The delegation is due to inspect the progress made on the Tax Administration Reforms Programme (TARP).

The WB delegation met representatives from the Federal Board of Revenue (FBR). The delegates informed the FBR that the WB is willing to defer the implementation of the reformed general sales tax (GST) programme by three months if the FBR abolishes all exemptions currently granted on GST on goods.

The FBR updated the WB delegation on the reforms taken thus far towards the implementation of the reformed GST regime.

The WB delegation is also due to be briefed on the progress of negotiations between the provinces and the federal government regarding the implementation of GST on services.

The WB has conditioned that the GST on services be instituted through the parliament instead of an ordinance for the three-month extension that it is willing to provide on the October 1 deadline for the implementation of GST on services.

The WB will also review the performance of the expedited sales tax return system and the electronic tax payment pilot project and the progress of customs reforms carried out by the FBR.

Published in The Express Tribune, September 16^th, 2010.