Published in DAWN on August 2, 2013
WITH reference to the letter
‘Replacing GST with VAT’, the problem is that most shop owners will refuse to
register for paying VAT.
How would FBR officials, for
instance, recover VAT (or any other tax) from the thousands of shops in
Karkhano Bazaar in Hayatabad (Peshawar)? Even if the FBR does get online access
to bank accounts, and sends notices to those who are involved in smuggling, how
will they be able to force the respondents to reply?
Knowing how such people
operate, you can be sure the tax notices will simply be thrown into the trash
can. In PML-N’s first tenure, a survey of shops in Lahore’s Liberty Market
evoked a violent protest when the traders realised that their true incomes
would be known to the FBR.
The prime minister himself
asked the FBR team to withdraw.
To get retailers to register
and pay VAT, a carrot-and-stick policy will have to be adopted. Those who do
register should be amply rewarded and those who refuse should be penalised. But
this cannot be done unless FBR personnel are given armed guards to force
traders to comply.
SHAKIR
LAKHANI
Karachi
https://dawn.com/news/1033595/replacing-gst-with-vat
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