ISLAMABAD: In a major shakeup, the government has decided to restructurethe entire tax machinery and introduce centralised collection of generalsales tax (GST) on services and goods, reported *Dawn*.
According to the report, the proposed measures were already approved by PMImran Khan on October 3 with a restructuring plan to convert the incumbentFederal Board of Revenue (FBR) into Pakistan Revenue Authority (PRA) with adeadline of June 2020.
But, the proposed timeline did not go as planned as the Inland RevenueService (IRS) chief commissioners opposed the move in a meeting held onMonday.
A source quoted in the report said that IRS officers will hold anothermeeting on Tuesday with the FBR chairman to appraise him about theirconcerns. Both tax groups — IRS and customs – have also warned to go on apen down strike in case government did not change the proposed plan.
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According to the report, the Ministry of Finance will prepare acomprehensive framework for PRA and centralised GST collection on servicesby the PRA. These reforms are part of the World Bank-funded ‘PakistanRaises Revenue Project’.
On the issue of centralised collection of GST on services, it has beendecided to constitute a joint committee comprising representatives from theMinistry of Finance, the FBR and provincial revenue authorities to finalisea proposal.
