| GEO Pakistan|
| PM-led meeting fails to evolve consensus on VAT|
| Updated at: 2321 PST, Wednesday, May 26, 2010|
ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani here on Wednesday chaired a meeting of Chief Ministers to discuss next year’s budget proposals.
The meeting reaffirmed the need for domestic resource mobilization including issues relating to implementation of various measures as well as the proposed value added tax with replacement of the GST.
It was decided to re-convene the meeting to finalize the proposals prior to the budget announcement.
Chief Ministers of Punjab, Sindh and Khyber Pakhtunkhwa, Adviser to the Prime Minister on Finance, officials of finance ministries attended the meeting.
According to sources, the finance adviser briefed the participants about imposition of VAT. However, he failed to evolve a consensus on the issue.
Sindh was stuck to his stance on collection of taxes itself instead of center while Punjab and KP disagreed with Sindh.
Sources said Punjab advised against the imposition of VAT and called for bringing improvement in the current tax collection system.
According to source, Prime Minister will call the meeting again in the next few day for reaching a consensus on VAT.