23 August, 2014 / Shawwal 26, 1435

Replacing GST with VAT

Updated Jul 28, 2013 08:17am

THIS refers to Mubarak Hussain’s letter (July 1) with regard to replacement of General Sales Tax with Value-added Tax.

The proposal is practical and enhances tax recovery. Further it leads to documented economy.

For the purpose of recovery of VAT, an infrastructure will be made in this regard and a statute under the title of ‘VAT Payers Registration Act or Ordinance’ may be promulgated according to which retailers, suppliers, and all other institutions/companies/professionals will be registered without any slab(s) and exemptions.

A proposed “VAT’s Accountants (Registration) Act or Ordinance” is also suggested to be enforced, according to which every VAT payer will furnish/submit his return(s) through registered VAT accountants and there will be no direct access of tax recovery officials to the VAT payers to avoid complications.

The proposed ‘VAT Accountants’ registered and/or licensed under VAT Accounts (Registration) Act or Ordinance will appear before the Tax department(s) and maintain the book of accounts etc on behalf of their clients (the payers).

More than 30,000 unemployed graduates will get jobs due to the enforcement of such statute(s) and proposed schemes and the ingredient of losses in the annual national budget will drastically come down.

SAALIM SALAM ANSARI Karachi

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Comments (1) (Closed)


Naeem Syed
Jul 28, 2013 04:30pm

So whats the Hold Up then ?