Rules to harmonise GST on services approved
In a significant development, the National Tax Council (NTC) on Wednesday approved the much-awaited Place of Provision of Service Rules (PPSRs), a step towards harmonising general sales tax on services across the country and ultimately easing the doing of businesses. Harmonising GST on services is a condition of the International Monetary Fund (IMF) to unlock funding to Pakistan stalled since December despite implementing several tough policy decisions, including additional tax measures. After approval of the respective provincial cabinets, the PPSRs will come into effect from May 1. The Sindh Revenue Board (SRB) suggested implementing the rules from July 1, while the other three provincial revenue authorities wanted the implementation from mid-April. The government is in a hurry to get loans from multilateral lenders to shore up its falling foreign exchange reserves and the early implementation of the World Bank project could give some breaking space to Pakistan.