ISLAMABAD: The Federal and provincial governments have developed a consensus on the harmonisation of the General Sales tax (GST) regime.
This was disclosed in the 6th meeting of the National Tax Council (NTC) chaired by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar.
The meeting considered and approved the recommendations put forth by the Executive Committee of the NTC on the 28th of March. These recommendations entailed the Draft Place of Provision of Service Rules, which is a major milestone towards GST harmonization across the country. The approval will help achieve the prior actions for the World Bank funded RISE programme.
The NTC decided with the consensus that the Place of Provision of Service Rules will take effect from 1st May, 2023 after approval by the respective provincial cabinets. However, electric power transmission will be excluded from the list of goods by FBR. For which the Sales Tax Act is required to be amended through the Finance Bill, will take effect from 1st July, 2023.
In conclusion, Finance Minister Senator Ishaq Dar appreciated the stakeholders for building consensus and for settlement of the harmonization of GST in the country.
Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Engr. Zamrak Khan Achakzai, Finance Minister Balochistan, S.M Ahsen Tanveer, Minister for Industries Punjab, Mr. Himayatullah Khan, Adviser to the CM KP on Finance, SAPM on Revenue Mr. Tariq Mahmood Pasha, Special Secretary Finance, Chairman FBR, Provincial Finance Secretaries and other senior officials from Finance Division and FBR also attended the meeting.
