Nawaz refuses to budge on RGST

Nawaz refuses to budge on RGST

  LAHORE: Economic and financial managers of the PPP-led government returned empty-handed from the Raiwind residence of the Sharifs on Friday as PML-N chief Nawaz Sharif refused to budge an inch on his stance on the reformed general sales tax.

Pakistan Muslim League - N chief Nawaz Sharif

The government team, led by Finance Minister Abdul Hafeez Sheikh, briefed Mr Sharif and Punjab Chief Minister Shahbaz Sharif on the economic situation of the country and the need for levying the new tax to qualify for the next tranche of IMF loan.
The PML-N chief declined to accept the argument and said there were other resources which could be used to improve the economic situation.
He said he was not against expanding the tax net and documentation of the economy. According to sources, he argued that imposing the ‘controversial’ tax without improving the ‘corrupt’ tax collection system would be of no use.
He reiterated his stance that the government should first plug the loopholes in the tax collection system and curb corruption to the tune of Rs300 billion. Only if the measure failed to generate sufficient revenue the government should levy the new tax.
The former prime minister said the RGST would further burden the masses already facing financial hardship because of rising unemployment and low investment in the wake of terror incidents and energy crisis.
Sharif says this will happen only if the government ensures good governance, ends corruption and tax evasion and reduces the size of the federal cabinet. However, he has accepted Dr Sheikh’s request to attend a comprehensive presentation on the issue from the Federal Board of Revenue (FBR).
This transpired in a meeting between an economic team of the government, headed by Dr Hafeez, and the Sharif brothers on Friday in Lahore, sources told daily Express newspaper.
In order to quash misperceptions about reformed GST, Dr Sheikh requested the Sharif brothers to attend a detailed briefing on the issue from the FBR. And the elder Sharif agreed to oblige, sources said.
“Sharif is flexible on this new tax issue,” a member of Dr Sheikh’s delegation told Express newspaper requesting anonymity. “If the FBR team manages to remove Sharif’s reservations, his party may support the reformed GST bill in parliament,” he said.
However, sources said that in the meeting Sharif refused to support the reformed GST bill. Instead he called upon the government to ensure good governance, end rampant corruption and “right-size” the federal cabinet.
Sharif promised support to the government on behalf of his party if it takes these steps for the revival of the country’s ailing economy.  PML-N spokesperson Siddiqul Farooq refused to comment on the development. “I’m not aware of any meeting between the Sharif brothers and the federal finance minister,” Farooq told The Express Tribune when contacted on phone.