Review of RGST draft: Body recommends formation of independent commission

Reforms Coordination Group for exclusion of FBR representatives in Reforms Coordination Group.

ISLAMABAD: The Reforms Coordination Group (RCG) has recommended the formation of a neutral and independent commission for reviewing the reformed general sales tax (RGST) bill draft.

A senior member of the RCG told The Express Tribune that the commission should include representatives from the International Monetary Fund (IMF), political parties, trade associations, chambers of commerce and industry and the textile sector. The inclusion of the IMF will be helpful in allowing businessmen and politicians of the country to convey their reservations and concerns to the donor body, he added.

The RCG has further recommended that the commission should not include anyone from the Federal Board of Revenue (FBR) because the FBR itself has a stake in the imposition of the bill, said the source while adding that representatives from the FBR’s legal team may be added to the commission if necessary.

Giving the example of the judicial commission, he said that an independent commission is always convened for debating new laws.

He added that the commission should be asked to submit a report, containing its recommendations, within a month of its formation. Forming the commission will allow all stakeholders to be taken on board while formulating the RGST, which will ensure the effective implementation of the tax, said the source.

Published in The Express Tribune, December 17^th, 2010.