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‘Value-added tax to be implemented in July 2010’

* Federal Board of Revenue chairman says culture of giving tax amnesty
is over

By Aamir Yasin

RAWALPINDI: The government has made a commitment to the International Monetary Fund (IMF) to introduce value-added tax (VAT) in the country, which will be implemented from July 2010, Federal Bureau of Revenue (FBR) Chairman Sohail Ahmed said on Thursday.

During a visit to the Rawalpindi Chamber of Commerce and Industry (RCCI), he said, “FBR is broadening the tax net and some more sectors, including agriculture and services, might be brought under the tax net in the future,” he said, adding that the final decision in this regard would be made by the government.

Over and out: He said, in the past, the business community had been given relaxation in tax audit for seven years, but the step had shown adverse effects, as the ratio of tax to GDP had dropped to nine percent. “The FBR is now making efforts to bring this ratio to 12 percent, and the culture of giving tax amnesty is over,” he said.

He said the finance ordinance did not have hidden motives, adding that it was the first step towards completing the unfinished agenda of economic stability. The FBR would clarify all sections of the ordinance very soon, he said.

Ahmed said that defence, debit servicing and general administration were the government’s priorities, adding that no funds were left for development after utilising resources for these main concerns.

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