News
Monday, May 31, 2010
Punjab Assembly members unite against VAT
By Hussain Kashif
LAHORE: Members of the ruling party and the opposition in the Punjab Assembly have united to oppose the introduction of a Value Added Tax (VAT), saying the tax would “unleash the monster of inflation” on an already burdened nation.
The government had announced to impose a 15 percent addition tax on every product, however, experts and rights activists believe that the additional tax would cause a manifold increase in the prices of commodities. The VAT issue has attracted criticism, with several quarters alleging that the government decided on the tax to attain more debt from the International Monetary Fund.
Almost all the political parties of the Punjab Assembly have reached a consensus that the proposed tax would prove to be harmful for society.
Pakistan Muslim League-Nawaz (PML-N) lawmaker Haji Allah Rakha Chaudhry told Daily Times that he refused to accept the claim of the Central Board of Revenue that inflation would not increase after the enforcement of VAT in the country. He said the Punjab government would not support the tax because “it was only being implemented to please the IMF”.
Pakistan Muslim League-Quaid lawmaker Samina Khawar Hayyat, opposing the VAT, said inflation would increase uncontrollably if the tax was introduced in the upcoming budget. Seemal Kamran, another PML-Q MPA, said the government was following the orders of the IMF in order to acquire a debt of $300 million.
Courtesy www.dailytimes.com.pk