The Reformed General Sales Tax (RGST) has met strong opposition in the Parliament, in view of which the Federal Government is now considering a plan-B which can be used as an alternative for the RGST, for income generation from January 1, 2011.
The initial draft of the proposed plan-B is under modification, and it is intended to remove all the exemptions presently made available under the General Sales Tax (GST) and GST zero-ratings facilities with effect from January 1, 2011. The Federal Board of Revenue (FBR) would withdraw these facilities and exemptions through a Statutory Regulation Order (SRO).
The newly-appointed Chairman of the FBR, Salman Siddique, has been assigned with the task of formulating and finalizing the actions necessary for the proposed plan-B, within seven days. As per the proposed plan-B, the government after pulling out all the GST exemptions and GST zero-ratings with effect from January 1, 2011, would table the RGST Bill before the Parliament together with the Finance Bill, while presenting the budget for 2011-12.
Fibre2fashion News Desk - India
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