World Bank gives 48-hour ultimatum to Pakistan

[arya-is-here]

 

[Nononsense]

In India we Pay 12% vat + 1% cess, this is since 2003 , 7 years.

and VAT is not levied on Basic nessasitiy, it is only applicable on luxury. DO you know in India we pay higher electricity bill if the units used are above a certain limit.
Meaning that poor should not be harmed, however if you can afford then PAY

 

[Blueclub]

Screw the mf PPP govt. 200 Billion spent on vechiles, that to by only one provience (Sindh) with an est yearly fuel consumption of 60 Billion. (270ltr/month per car)

The president house + the prime minister house spending rs 3 million a DAY! (1.5 million each)

Billions spent on rental power.

Pakistan had 16B USD (est) foreign reserve with Mushraf left now after three years it shrank to 4-5B USD (est)

Pakistan Gold reserves have dropped 70%+ in the three years.

And I see people on the forum getting angred when Indian members say the have better air advantage... I say we look into our selves... learn to ACCEPT & LEARN from mistakes and dont fkin make that again.

I am in business of import I lost 40% of my clieant due to price hikes in the pat three years. the thing I sold for 100 three years back I now see for 350+ and that to with my profit depriciating 50% and that is the situation of almost all businesses here in Pakistan.

Long live Pakistan. FK the LEADERSHIP.

WTF? I see all the peole support democracy and all, but I say if illetrate people are left to choe the fate of a country the coutry is fkd! Communisum? or Imperial rule I say...

1Billion = 1Crore right? if not that is what I meant.

 

[WAQAS119]

DO you know in India we pay higher electricity bill if the units used are above a certain limit.
Meaning that poor should not be harmed, however if you can afford then PAY

dude! this is same here in Pakistan.

 

[Realist]

Unfortunately, the ramnifications will be felt by the lowly, and the rich will be just fine.

You voted for Zardari, you reap what you sow.

 

[pak-yes]

Forgive my ignorance but doesn't VAT means Value Added Tax i mean tax on things that can be considered luxuries.So what's wrong in it?

 

[SpArK]

VAT is not necessarity always applied to luxury goods.

Method Of Collecting VAT
VAT can be collected in two different methods. In method one, tax is charged both on the basis of the tax which is paid on purchase and the tax that is payable on the sale(shown separately in the invoice).Finally the difference between the tax paid on purchase and the tax paid on sale according to the invoice is VAT.

In the other method tax is collected and charged on the cumulative value of the tax paid on sale and purchase, by applying the rate of tax applicable to the goods. Which means the difference between the sale price and purchase price is VAT.


The chief benefit for execution of VAT is:

* Reduces tax evasion.
* Multiple taxes such as turnover tax, surcharge on sales tax, additional surcharge etc have been put an end to.
* Advocated an internal system of self assessment for VAT liability.
* Tax structure becomes easier and more visible.
* Enhances tax compliance and results in higher revenue growth.
* Encourages competitiveness of exports.

 

[SpArK]

VAT in India

VAT has replaced the present sales tax in India. Under the current single-point system of tax levy, the manufacturer or importer of goods into a State is liable to sales tax. There is no sales tax on the further distribution channel. VAT, in simple terms, is a multi-point levy on each of the entities in the supply chain with the facility of set-off of input tax - that is, the tax paid at the stage of purchase of goods by a trader and on purchase of raw materials by a manufacturer. Only the value addition in the hands of each of the entities is subject to tax. For instance, if a dealer purchases goods for Rs 100 from another dealer and a tax of Rs 10 has been charged in the bill, and he sells the goods for Rs 120 on which the dealer will charge a tax of Rs 12 at 10 per cent, the tax payable by the dealer will be only Rs 2, being the difference between the tax collected of Rs 12 and tax already paid on purchases of Rs 10. Thus, the dealer has paid tax at 10 per cent on Rs 20 being the value addition in his hands.

Purchase price - Rs 100
Tax paid on purchase - Rs 10 (input tax)
Sale price - Rs 120
Tax payable on sale price - Rs 12 (output tax)
Input tax credit - Rs 10
VAT payable - Rs 2

VAT levy will be administered by the Value Added Tax Act and the rules made there-under.

VAT can be computed by using either of the three methods detailed below

* The Subtraction method:- The tax rate is applied to the difference between the value of output and the cost of input.
* The Addition method: The value added is computed by adding all the payments that is payable to the factors of production (viz., wages, salaries, interest payments etc).
* Tax credit method: This entails set-off of the tax paid on inputs from tax collected on sales.

India opted for tax credit method, which is similar to CENVAT.

 

[pak-yes]

In simple words?How it is applied to non luxurious goods?

 

[SpArK]

In simple words?How it is applied to non luxurious goods?

Sales Tax/VAT In India

Sales tax is levied on the sale of movable goods. Most of the Indian States have replaced Sales tax with a new Value Added Tax (VAT) from April 01, 2005. VAT is imposed on goods only and not services and it has replaced sales tax. Other indirect taxes such as excise duty, service tax etc., are not replaced by VAT. VAT is implemented at the State level by State Governments. VAT is applied on each stage of sale with a mechanism of credit for the input VAT paid. There are four slabs of VAT:-

• 0% for essential commodities
• 1% on bullion and precious stones
• 4% on industrial inputs and capital goods and items of mass consumption
• All other items 12.5%
• Petroleum products, tobacco, liquor etc., attract higher VAT rates that vary from State to State

 

[Hyde]

1Billion = 1Crore right? if not that is what I meant.

1 billion = 100 crore...............

 

[Mogambo]

if u want their loan..they set conditions...

also these steps are need to improve conditions in Pakistan. in reality it will benefit pakista not world bank.

world bank will no tax collected through VAT, pak govt will get it and it will be spend on Pakistani people

 

[Mogambo]

Sales Tax/VAT In India

Sales tax is levied on the sale of movable goods. Most of the Indian States have replaced Sales tax with a new Value Added Tax (VAT) from April 01, 2005. VAT is imposed on goods only and not services and it has replaced sales tax. Other indirect taxes such as excise duty, service tax etc., are not replaced by VAT. VAT is implemented at the State level by State Governments. VAT is applied on each stage of sale with a mechanism of credit for the input VAT paid. There are four slabs of VAT:-

• 0% for essential commodities
• 1% on bullion and precious stones
• 4% on industrial inputs and capital goods and items of mass consumption
• All other items 12.5%
• Petroleum products, tobacco, liquor etc., attract higher VAT rates that vary from State to State

The more pak govt. delays VAT the better for us.

In India, VAT has highly benefited all of the state governments.

Now, we are upgrading from VAT to GST.

The tax rates will be less, uniform, but tax collection will be much more.

More money for Airports, railways, schools, hospitals, poor, research and Defense.

 

[SpArK]

The more pak govt. delays VAT the better for us.

How??.. explain..

 

[desiman]

It was coming ...
I hope the Gov donot takes WB Bullying ... Stop the Nato Supplies , Hell we are fighting a War and in these times public support is critical . By hiking Electricity Bills and including VAT public will greately be burdened and could come to streets which might create Bad Law and Order Situation.
Sell off some Nukes if the WB dosent supports ..!!

ohh ya stop the nato supplier and destroy whatever little that is left, so smart ehhh lol