ICMD, Nov 21, 2019:
The Federal Board of Revenue (FBR) has decided in principle to move towards replacing the existing General Sales Tax (GST) with Value Added Tax (VAT) across the board for all sectors under the World Bank funded loan conditions, a report said this morning.
Under the proposed reform plan on which the implementation was so far deferred till establishment of Pakistan Revenue Authority (PRA) and holding of consultation with all stakeholders, it has been decided in principle that the FBR will move gradually towards replacing the existing GST and come up with the VAT mode across the board for all sectors to ensure effective collection of real due taxes.
“In this regard, the FBR will conduct assessment surveys of different industrial/business segments under proposed reform plan,” top official sources confirmed to The News here on Wednesday.
FBR Chairman Shabbar Zaidi reportedly said that the FBR would ultimately move towards full implementation on VAT in order to bring all sectors for contributing in country’s taxation system. He said that the CNIC condition was a move towards implementing the VAT and FBR stood firm on it. He said that the establishment of PRA was deferred for time being but all other reforms including moving towards VAT was part of the overall reform agenda of the FBR.