Pakistan

VAT presentation likely to be delayed

The government is likely to delay Value Added Tax in the upcoming budget said sources on Friday.

Express June 04, 2010

ISLAMABAD: The government is likely to delay Value Added Tax in the upcoming budget, sources said on Friday.

Sources in the Federal Board of Revenue said that Value Added Tax will not be presented before the parliament on Saturday.

Reports indicate that the sales tax rate is expected to rise to 17 per cent instead, after the parliament's approval.

Tax collection target for next fiscal year is also set to rise from Rs1,667 billion to Rs1,680 billion.

Regulatory duty on more than 200 luxury and electronic items including stainless steel will also be revoked. Meanwhile duty on import of automobiles may also see reduction of 10 per cent.

Sources also said that tax on salaries will likely be reduced.

COMMENTS (4)

Sarosh | 14 years ago | Reply Our parliamentarians will never introduce the wealth tax act, because they are the wealthiest ones themselves.

Salman Latif | 14 years ago | Reply The bump in sales tax as a result of VAT is only one part of the larger saga. At one side, the economy is at such a low ebb that without an influx of foreign loands and aid, it may crumble upon itself. And at the other, each of these loans and aids brings with it a number of conditions, each triggering further the economic degeneration. The loans would have been any better had they been expended towards economic sustainability and self-sufficiency. But of course with we as a rising star in the list of most corrupt nations, that seems a far-cry. So let's brace ourselves not only for the 17% sales tax but a bump in power tariff, approximated between 7% and 15% and with it, a further deterioration of daily life for an average citizen. Where at one side howsoever we may regret that economic disparity we have come to bear today, the future seems no less bleak especially when you look to the budgetary developments. The government, with its rather unqualified staff of economists, and parliamentarians who are found yawning in the entirely non-interactive budget-session, seems little interested in devising fruitful policies. Which simply means that the treasury will go on to relentlessly spend money without any proper planning, though the only strictly followed measure would be the pay-back to IMF. Welcome to prosperous land of Pakistan, my friend!

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Nabeel | Create Your First Website | 14 years ago | Reply Why will the GST rise to 17%? Isn't it enough already?? Burdening the poor even more....

suhail | 14 years ago | Reply it is good for our country to generate revenue from VAT but make it sure that futher investment should in proper way such as in developmental sectors.

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