Islamabad: The Federal Board of Revenue (FBR) has announced its intention to replace its existing General Sales Tax (GST) collection framework with a Value Added Tax (VAT) collection mechanism, a news source reported. Further, the taxation authority plans to collect VAT from all sectors of the national economy in order to fulfill the loan grant requirements communicated by the World Bank (WB).
As per officials, the FBR would take up the matter with stakeholders after the establishment of the Pakistan Revenue Authority (PRA). They said that the federal institution would conduct assessment surveys of various industrial sectors under the proposed reform plan.
FBR Chairman Shabbar Zaidi recently stated that the board sought a full-fledged implementation of the proposed VAT collection mode in order include all sectors of the economy in the national tax system.
He also revealed that FBR had enforced the Computerised National Identity Card (CNIC) condition in a bid to implement the VAT system. Further, he maintained that all of these reforms were part of FBR’s overall structural overhaul.