Govt to bring more cos under VAT net

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Doulot Akter Mala
The government has decided to bring more tax payers under Value Added Tax (VAT) net along with the drive to find new income tax payers to boost internal resources in the wake of global economic meltdown.
The revenue board brought around 51,000 new companies under VAT net during January-October period last. Currently, the total number of VAT paying companies stands at 0.62 million.
"The National Board of Revenue (NBR) is now scrutinising and cross-checking VAT payments of big players whether they have paid their due VAT or not" said NBR chairman Muhammad Abdul Mazid.
The revenue board is also closely monitoring the sale of electronic cash register (ECR), installation of which will be mandatory from January 1.
"From the sale of ECR it has been noticed that businesses are getting preparations for installation of ECR before the deadline," said NBR chairman.
The NBR is also carrying out extensive programme holding workshops and discussions to build awareness about ECR installation, he said.
The NBR has instructed the VAT officials to remain careful about the selection of the shops and businesses for monitoring ECR installation, officials said.
Posh and large shops will be inspected in the first phase after January 1.
The NBR has also brought the two large taxpayers' unit under the supervision of one member to cross-check the payment of VAT with the income tax files.
In the first quarter of the current fiscal, the VAT department's net growth rate was 14.69 per cent against its target of 22.09 per cent.
Following a poor growth of VAT department, a team of the International Monetary Fund (IMF) recently suggested the NBR for re-drafting the VAT laws for streamlining collections from the most potential sector of revenue earning.
The government has introduced VAT in 1991 in line with the IMF suggestions.