ISLAMABAD: The Federal Board of Revenue (FBR) is finalising its viewpoint on the concept papers developed by the provincial revenue authorities on “grey areas”, i.e. restaurant services, transportation of petroleum services, toll manufacturing, and construction business.

Sources told Business Recorder here on Wednesday that the tax authorities of the FBR informed this during the 5th Meeting of the Executive Committee of the National Tax Council (NTC) held in the Finance Division to review the deliberations on the GST harmonisation.

The secretary, Finance Division, welcomed the participants, and recapitulated the discussion of the 4th meeting of the executive committee.

He stated that the focus of discussion was shifted from “definitions” to the “issues” to arrive at an early decision.

Once the issues have been discussed and settled, it would be easier to forge consensus on “definitions” of goods and services.

Accordingly, a Technical Committee comprising representatives of the federal and provincial revenue authorities was constituted in the last meeting of the Executive Committee of the National Tax Council to study and give recommendations to settle the contentious issues within a time frame of one month.

A senior official of the Finance Division informed the meeting that the revenue authorities of the provinces had presented four Concept Papers on “grey areas”, i.e., restaurant services, transportation of petroleum services, toll manufacturing, and construction business, in a meeting held in the FBR HQs on January 21, 2021.

The concept papers contain viewpoints of both the FBR and the provinces.

It was decided in the said meeting that the FBR would provide its viewpoint on the concept papers shared by the provinces.

Member IR (Policy), FBR informed that the viewpoint of the FBR was being finalised on the concept papers developed by the provinces.

However, a judgment of the Supreme Court of Pakistan has been received in the meantime on a petition titled, Civil Aviation Authority versus Sindh Revenue Board on imposition of Sales Tax.

This judgment has a direct impact on the issues under discussion between the federal government and the provinces.

The FBR was in the process of examining the said judgment and it would provide its viewpoint in the next couple of days. Advisor Khyber-Pakhtunkhwa Revenue Authority (KPRA) and the chairman Sindh Revenue Board (SRB), stated that the FBR may share its viewpoint in writing with the revenue authorities of the provinces.

The revenue authorities of the provinces would then revert to the Executive Committee of the National Executive Council about their standpoint.

AFS(IGF), Finance Division requested the FBR to share its views on the concept papers with the Finance Division and the revenue authorities of the provinces within one week. The revenue authorities of the provinces may then update about their position on the stance taken by the FBR.

The next meeting of the Executive Committee will be held on February 15th, 2021 in the committee room of the Finance Division.

Copyright Business Recorder, 2021

Comments

Comments are closed.