News
Saturday, April 17, 2010
15% VAT on non-essential items, 5% on essential items
ISLAMABAD: The country is likely to have two rates for value-added tax, with non-essential goods likely to be charged 15 percent, while essential items will be charged a VAT of 5 percent from July 1, 2010, official sources said on Friday.
A meeting of the Revenue Advisory Council (RAC) under Chairman Dr Hafeez Pasha was informed on Friday that based on studies conducted recently, the government could opt two rates – 15% and 5% – from the next fiscal year.
The council was informed that items consumed by poor and low income groups, mainly food items and life saving drugs, would remain exempted from 15% VAT levy, adding that the exemption list would be further expanded before a formal approval by parliament.
Courtesy www.dailytimes.com.pk