GST harmonisation delayed further

The National Tax Council (NTC) could not meet this week in the absence of full quorum, despite formally convening a meeting, an affair which may appear to be small, but highlights the challenges posed by increasing political polarisation amid an unfavourable global environment for raising debt. The council was scheduled to meet on Monday to make a decision on complying with a critical condition set by the World Bank for the release of a colossal loan of $900 million. The World Bank and the International Monetary Fund (IMF) have long been pushing Pakistan to integrate the sales tax on goods and services systems to avoid leakages and facilitate the taxpayers. But the decision involves the federal government and four provincial administrations, whose administrative or legislative approvals are needed to have one system for sales tax on services. “I was waiting in my office to join the meeting at 11.30 am through video link, but suddenly my team informed me that the meeting has been postponed,” said Punjab Finance Minister Mohsin Leghari.