PCA termed VAT impracticable, asked for broader consultation
Posted by admin on May 04 2010 13:37:19

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ISLAMABAD: The imposition of broad-based Value Added Tax (VAT) would be an impractical step of the government under the situation where businesses were already suffering due to multiple factors like smuggling heavy taxes, soaring electricity/gas prices & high mark up, said Furqan Murtaza, the acting president of Pakistan Computer Association (PCA), Islamabad. While speaking at the meeting of Islamabad Chapter of the association, he said that without tackling these hurdles, imposition of VAT would put businessmen at disadvantage proving disastrous for business activities in the country.

Furqan Murtaza said that to avoid strike calls, agitation and closure of business and trade, its high time for the government to take the stakeholders on board on this key issue and remove all reservations of businessmen before taking any final decision on VAT. 

He opined that the tax projections of Rs.600 billion from VAT, was not a realistic target and it had created new fears in the businessmen as VAT might unleash a new series of notices to them. He feared that VAT would promote tax evasion culture instead of enhancing tax revenue.     

The acting president of PCA Islamabad warned that the retailers, wholesalers & dealers were not ready to come under the new VAT law. Therefore, he said, FBR should engage all stakeholders in dialogue including the FPCCI, Chambers of Commerce and Industry, Trade Bodies and tax bar associations to obtain their input and build a consensus before implementing VAT.       

He said emphasized on a proper communication with the business and trade for understanding the implementation of the VAT law and stressed that before considering any new tax, businessmen should always be taken on board to achieve desired results.