VAT regime to include more items

All kinds of agriculture products and power machinery in Pakistan would be brought into the value-added tax regime.

Persons engaged in the business of agriculture products having annual turnover of Rs7.5mn would be required to operate under the VAT [value added tax] regime from July 1, 2010, official sources here say.

Similarly, trading of fruits, vegetables, cotton and rice would be taxable under the new law provided annual turnover exceeds Rs7.5mn.

An official of the Federal Board of Revenue said that the new federal VAT would empower the Federal Board of Revenue to charge 15% VAT on the supply of consumer items sold in packing, on which presently sales tax has been charged on printed retail price.

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on Feb 22 2010. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry