Rates, areas of VAT may be enhanced
Thursday, 10 June 2010
Doulot Akter Mala
The government is likely to bring major changes in the areas of Value Added Tax (VAT) by raising the rate of the levy for professionals, amusement parks, dockyards and shops.
Taxes on consultants, engineers, auditors, accountants will go up as the government is set to raise VAT by more than three times in the budget for fiscal 2010-2011.
Engineering, consultancy, auditing, accounting firms, theme park, shooting and picnic spots, dockyards will have to pay 15 per cent VAT instead of 4.5 per cent from the next fiscal.
The National Board of Revenue (NBR) will withdraw truncated base VAT on those sectors as it feels the need for increasing the rates to boost VAT collection gradually, officials said.
The government might also hike amounts of package VAT on shops and businesses by 50 per cent from the next year.
It is imperative to revise the package rates of VAT upward as that remained same during the last eight years, they said.
The NBR fixed the amount of package VAT in 2002 last and it has not been changed since than, they added.
Prices of imported powdered milk might decline as the revenue board will cut duty rates and taxes on import of the item to rein in its escalating prices in the local market.
Existing 5.0 per cent regulatory duty (RD) and 2.5 per cent VAT at local stage will be waived on import of powdered milk while customs duty will be reduced to 5.0 per cent from 12 per cent.
The government is likely to bring major changes in the areas of Value Added Tax (VAT) by raising the rate of the levy for professionals, amusement parks, dockyards and shops.
Taxes on consultants, engineers, auditors, accountants will go up as the government is set to raise VAT by more than three times in the budget for fiscal 2010-2011.
Engineering, consultancy, auditing, accounting firms, theme park, shooting and picnic spots, dockyards will have to pay 15 per cent VAT instead of 4.5 per cent from the next fiscal.
The National Board of Revenue (NBR) will withdraw truncated base VAT on those sectors as it feels the need for increasing the rates to boost VAT collection gradually, officials said.
The government might also hike amounts of package VAT on shops and businesses by 50 per cent from the next year.
It is imperative to revise the package rates of VAT upward as that remained same during the last eight years, they said.
The NBR fixed the amount of package VAT in 2002 last and it has not been changed since than, they added.
Prices of imported powdered milk might decline as the revenue board will cut duty rates and taxes on import of the item to rein in its escalating prices in the local market.
Existing 5.0 per cent regulatory duty (RD) and 2.5 per cent VAT at local stage will be waived on import of powdered milk while customs duty will be reduced to 5.0 per cent from 12 per cent.