ISLAMABAD: Amid emerging political uproar, the government is working on a ‘Plan B’ for additional revenue mobilisation that envisages withdrawal of sales tax exemptions and zero-rating of goods in major sectors through a cabinet decision in case its efforts to have parliamentary backing for RGST (reformed general sales tax) met with a deadlock.
Informed sources told Dawn on Thursday that policymakers had asked the Federal Board of Revenue to get ready for Plan B as a contingency measure.
Also, the government over the next few days will be paying more attention to wooing the Pakistan Muslim League-Q into supporting the RGST bill in the NA’s Standing Committee on Finance and subsequently in the National Assembly.
The sources said that with the PML-Q help the government could turn the support for the RGST bill to nine in the 17-member committee, leaving the opposition to the proposed legislation by the PML-N, MQM and JUI-F of little effect.
The government is yet to convene a meeting of the standing committee or the NA session over the RGST bill.
Officials said that sales tax exemptions had started to be granted in 1992 through statutory regulatory orders following the