Holbrooke lauds RGST bill approval

US Special Envoy Richard Holbrooke says Washington supports proposed RGST bill, plans to reform tax system.

WASHINGTON: US Special Envoy for Pakistan and Afghanistan, Richard Holbrooke, on Wednesday said that Washington supports the proposed Reformed General Sales Tax (RGST) bill.

The US representative was addressing a press conference in Washington where he said that he appreciated the Pakistani government's plans to reform the tax system. He said that he will tour Pakistan from Friday to attend the Pakistan Development Forum (PDF).

Holbrooke said that the US has planned a hefty package for reconstruction in flood hit areas which in addition to Kerry Lugar aid and that the US was generating more funds through other sources as well to give flood aid to Pakistan.

He added that the US administration will push for the Reconstruction Opportunity Zones (ROZ) legislation in the next meeting of Congress.

Addressing Pakistan’s objections to UN Security Council reforms, he said that Pakistan should not be concerned about proposed Indian membership as reforms in the world body have long been overdue.

The federal cabinet on Wednesday approved a bill to overhaul the tax regime, besides announcing new tax measures of Rs69 billion, primarily to rebuild flood-hit areas, initiating a process of ‘correcting past mistakes’.

The government appears to have rushed the tabling of this bill to meet a key demand by members of the Pakistan Development Forum (PDF), where international donors plan to hold a crucial meeting with Pakistani economic managers from November 14.