The Federal Board of Revenue (FBR) has decided to replace the existing General Sales Tax (GST) with Value Added Tax (VAT) across the board for all sectors under World Bank’s funded loan conditions. According to FBR Chairman Shabbar Zaidi, FBR will gradually move towards full implementation of VAT in order to ensure all sectors contribute to the country’s taxation system.
VAT will replace GST within 2 to 4 years to enhance revenues, broaden the tax-base and assist in the documentation of the economy. The efforts made by FBR in the past to implement VAT had failed and once it had resulted in the suspension of the IMF sponsored programme during the PPP-led regime in 2011
Source: Pro Pakistani