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IMF will not object to VAT delay: official
Finance Secretary Salman Siddique said here on Friday the International Monetary Fund would have no objection to the delay in implementation of Value-Added Tax (VAT), expressing confidence that implementation of the IMF programme was on track.
Talking to journalists in the Parliament House, Mr Siddique said the next meeting with IMF was expected at the end of next month or early August and IMF authorities would have no serious concern over the delay in VAT implementation.
The IMF programme is not linked to VAT; it is more linked to the capacity of our system to generate revenues, the finance secretary said, adding: It is important that we generate our revenues.
He said the reformed General Sales Tax (GST) would replace the Value Added Tax and if the country was able to generate enough resources from this there would be no objection from any side.
He said that consensus had been reached with provinces on technical aspects of introducing the reformed GST, but time would be required to settle some legal issues. The finance secretary declined to comment if VAT had been shelved or it would not be implemented from Oct 1, 2010, as was announced earlier.
VAT implementation has only been deferred, but it is our duty to continuously work on all options, the finance secretary said.
The media was informed that around $800 million would be disbursed under the Kerry Lugar Bill by the end of ongoing fiscal year and a major part of this amount had already been received.
We expect more than $800 million under the Kerry Lugar Bill in next fiscal year 2010-11, he added
About ongoing talks with a US team headed by David Lipton, Special Assistance to US President, Mr Siddique said it was an advanced team to assess disbursements under the Kerry Lugar Bill.
The US team was also assessing utilisation mechanism of the amount received by the Pakistan government from the US under different heads.
The US has shown willingness to help Pakistan in three key areas: energy, food security and human resource development, Mr Siddique said.
He said that several US projects, many of them by private sector, were expected in the next fiscal year.
DAWN.COM | Front Page | IMF will not object to VAT delay: official
Finance Secretary Salman Siddique said here on Friday the International Monetary Fund would have no objection to the delay in implementation of Value-Added Tax (VAT), expressing confidence that implementation of the IMF programme was on track.
Talking to journalists in the Parliament House, Mr Siddique said the next meeting with IMF was expected at the end of next month or early August and IMF authorities would have no serious concern over the delay in VAT implementation.
The IMF programme is not linked to VAT; it is more linked to the capacity of our system to generate revenues, the finance secretary said, adding: It is important that we generate our revenues.
He said the reformed General Sales Tax (GST) would replace the Value Added Tax and if the country was able to generate enough resources from this there would be no objection from any side.
He said that consensus had been reached with provinces on technical aspects of introducing the reformed GST, but time would be required to settle some legal issues. The finance secretary declined to comment if VAT had been shelved or it would not be implemented from Oct 1, 2010, as was announced earlier.
VAT implementation has only been deferred, but it is our duty to continuously work on all options, the finance secretary said.
The media was informed that around $800 million would be disbursed under the Kerry Lugar Bill by the end of ongoing fiscal year and a major part of this amount had already been received.
We expect more than $800 million under the Kerry Lugar Bill in next fiscal year 2010-11, he added
About ongoing talks with a US team headed by David Lipton, Special Assistance to US President, Mr Siddique said it was an advanced team to assess disbursements under the Kerry Lugar Bill.
The US team was also assessing utilisation mechanism of the amount received by the Pakistan government from the US under different heads.
The US has shown willingness to help Pakistan in three key areas: energy, food security and human resource development, Mr Siddique said.
He said that several US projects, many of them by private sector, were expected in the next fiscal year.
DAWN.COM | Front Page | IMF will not object to VAT delay: official
