Pakistan warned against ignoring VAT

MANNO

Councller (250+ posts)
ISLAMABAD: The International Monitory Fund (IMF) has warned Pakistan against non-implementation of the Value Added Tax with effect from July 1.

They have conveyed that both installments of $3.7 billion would not be disbursed in case VAT system is not implemented. In addition the government would be liable to return $7.6 billion that had already been received from the IMF.

Sources are of the view that in case of non-compliance of IMF conditions Pakistans exports and imports, both civil and military, could be blocked. Adviser on Finance Abdul Hafeez Sheikh, who is Senator-elect and is expected to present the new budget on June 5, has returned from Qatar after talks with IMF.

Meanwhile, a meeting of the Revenue Advisory Council (RAC) was held here to fix the tax targets in the coming budget. Sources are of the opinion that FBRs revenue target in the budget is expected to be around Rs1700 billion which is 24% more than the target set in the outgoing financial year.

The RAC will meet today (Saturday) again. The gross tax collections of the FBR so far have been over Rs1,155 billion. The net tax collections were however at Rs1, 088,320,000,000. The FBR spokesman said here that during the last three and a half months Rs67, 260,000,000 were issued as refund. There has been 17% raise in the collections of direct taxes and 13% in the sales taxes.

Direct tax collections from Punjab and Khyber-Pakhtunkhwa by the end of April 2010 had been beyond the set target. The collections were recorded at Rs205.4 billion. The sales tax collections during the same period had been Rs3.5 billion more than the set target. However the federal excise duty collections remained Rs1.5 billion less than the set target, he said.

http://www.thenews.com.pk/top_story_detail.asp?Id=29009
 

Abdali

Senator (1k+ posts)
International murder fund of the jews is telling brown muslim slaves to follow a talmudic system?Coward inbreds have no courage or brains left.
 

BluntMan

MPA (400+ posts)
Pakistan WARNED against ignoring VAT. Still stupid A**hole politicians will say Pakistan's economic policy is not dictated by IMF and World Bank.
 

greywolf

Councller (250+ posts)
And Robin Rafael says US sides with IMF over VAT issue ..... so it is useless to deter this tax because we did not brought these jokers, clowns and US puppets down before.
 

mehwish_ali

Chief Minister (5k+ posts)
VAT in itself is not a bad thing. Actually it is ideal thing if used properly.

VAT is the best way to get Money from the Rich people and distribute among the Poors (if there is any Just Government there). It is while most of "Services" and "Goods" are used by the Rich People only. Therefore, they had also to give more and more tax money in form of VAT. Government could use this extra Tax money to give separate grants to only and only Poor people.

Any how, in case of Pakistan, this extra money will go in pockets of Politicians which is not good.
 
K

khan125

Guest
previous government ne IMF ko khuda hafiz keh diya tha.

Why this government went to IMF.............zardari kuttey ka is me b commission hoga.
 

rajakhanmd

Senator (1k+ posts)
I doubt that this would be imposed on the services which are being used by ''Rich'' people. As a lay man in terms of understanding economics, my feeling is that in Pakistan, it is going to be imposed in a manner that is close to the present GST (General Sales Tax).

So for me, VAT is another indirect tax that makes sure that the Pakistanis pay this tax irrespective of how much money they make, hundreds or billions. Another way to make sure to avoid direct taxation so that elite class is not disturbed.