Breakthrough in RGST deadlock expected today
The deadlock between the federation and provinces over standalone services will be resolved today, it is expected.
ISLAMABAD:
The province of Sindh has submitted a separate draft detailing procedures for the implementation of sales tax on services and sales tax collection. It is also expected that the deadlock between the federation and provinces over the issue of standalone services will be resolved today on Friday in the next round of negotiations between the Federal Board of Revenue (FBR) and provincial representatives.
According to sources, the draft presented by the province of Sindh will probably be sent to all four provincial assemblies for approval.
Standalone services are those which require little or no input tax adjustments and taxation on standalone services will be under provincial jurisdiction. There are seven services that Sindh claims should be under the category of standalone services, which the rest of the provinces differ on.
Discussions also resumed yesterday on Thursday regarding the feedback that provinces had provided on the draft reformed general sales tax (RGST) bill. The remarks and discussions from this session will be incorporated into negotiations on Friday. Sindh had earlier presented a report with a total of 30 recommendations in response to the draft RGST bill.
Published in The Express Tribune, October 29th, 2010.
The province of Sindh has submitted a separate draft detailing procedures for the implementation of sales tax on services and sales tax collection. It is also expected that the deadlock between the federation and provinces over the issue of standalone services will be resolved today on Friday in the next round of negotiations between the Federal Board of Revenue (FBR) and provincial representatives.
According to sources, the draft presented by the province of Sindh will probably be sent to all four provincial assemblies for approval.
Standalone services are those which require little or no input tax adjustments and taxation on standalone services will be under provincial jurisdiction. There are seven services that Sindh claims should be under the category of standalone services, which the rest of the provinces differ on.
Discussions also resumed yesterday on Thursday regarding the feedback that provinces had provided on the draft reformed general sales tax (RGST) bill. The remarks and discussions from this session will be incorporated into negotiations on Friday. Sindh had earlier presented a report with a total of 30 recommendations in response to the draft RGST bill.
Published in The Express Tribune, October 29th, 2010.