PML-N shows flexibility, MQM refuses to budge on RGST

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ISLAMABAD – The International Monetary Fund (IMF) team on Tuesday held separate meetings with the PML-N and MQM to garner support for the implementation of the reformed general sales tax (RGST) at the federal and provincial levels.
The IMF team, consisting of Middle East and Central Asia Department Director Masood Ahmed, Mission Chief for Pakistan Adnan Mazarei and Resident Representative Paul Ross, held talks with PML-N and MQM leaders. Both parties linked their support to improvement in governance, elimination of corruption and taxing of agriculture sector, a source privy to the talks said.
The government had asked the IMF to hold talks with political parties, especially the PML-N and MQM. Without their approval a smooth implementation of the economic reforms was not possible, the government team had informed the IMF. The IMF delegation met an MQM parliamentary team headed by Farooq Sattar at the Parliamentary Lodges. The IMF team sought support for the implementation of GST reforms.
However, MQM flatly refused and stressed that the urban population could not bear extra taxation. They proposed that the IMF should stress additional revenue generation from the agriculture sector and plug corruption in the Federal Board of Revenue. The IMF team tried to convince MQM that the broadening of tax base would lead to more revenue sharing among the provinces.
However, the MQM stressed tapping the agriculture sector, which enjoyed huge subsidies. Later, the IMF team held talks with the PML-N’s Punjab Chief Minister Shahbaz Sharif, Senator Ishaq Dar and Khawaja Asif at the Punjab House. The PML-N leaders said their support was linked to the implementation of Nawaz Sharif’s 10-point agenda. They said the implementation of the agenda would help overcome a majority of challenges faced by the economy.
The PML-N team assured the IMF delegation of its support if the government sincerely worked on eliminating corruption, reducing expenditure and better financial management.