The Federal Board of Revenue (FBR) has planned to replacing the existing General Sales Tax (GST) with Value Added Tax (VAT) across the board for all sectors under the World Bank funded loan conditions.
According to the FBR, Value Added Tax regime (instead of general sales tax) needs to be gradually implemented within 2-4 years to enhance revenues, broaden the tax-base and assist in documentation of economy. The FBR has planned to fully implement the VAT regime for all business segments over the next 2-4 years.
The roadmap for VAT implementation further revealed that the VAT be progressively implemented across various segments commencing with Third Schedule (retail price items) products and gradually absorbing complex value chain products.
The FBR will also ensure enactment of the VAT related legislation, rules and regulations, if required.
The FBR will also finalize stages and complexities in each product value chain with time and resources for VAT assessment surveys of particular industrial/business segment.
