RAWALPINDI: The National Assembly standing committee on Finance made it clear to the representatives of chambers of commerce that the government would implement the Value Added Tax (VAT) because it had no other option to generate the required revenue.

Chairperson of the committee Fauzia Wahab said that anomalies in the bill identified by the business community would be removed.

She was speaking at a meeting with representatives of the chambers of commerce and offices bearers of trade organizations over the adverse impact of VAT here on Wednesday.

The meeting chaired by Rawalpindi Chamber of Commerce and Industry (RCCI) president Kashif Shabbir, was also attended by Manzoor ul Haq Malik Former President Sheikhupura Chamber of Commerce & Industry and presidents of chambers of Karachi, Gujrat, Gujranwala and Faisalabad, Muzaffar Hameed-SCCI.

Ms Fauzia said that VAT would bring a uniform tax system and will remove various rates.

She supported the demand of the private sector about tax exemptions, improvement in refund system and giving incentives to small traders.

She said that refund was a big issue that would be solved through negotiations with the business community. An incentive package would be introduced for local traders.

The government was also contemplating to bring credit card users into tax net as some 1.7 million people were using credit cards in the country, she said.

She said that the government would soon make functional Kot Abdul Malik Interchange on Motorway near Sheikhupura to facilitate industrialists and traders, while internet facility would also be provided in central Punjab. Shahid Khaqan Abbasi, a member of the committee, said if people refuse to pay direct tax than VAT like system will come.

He made it clear to the business community that VAT will have to be implemented in January, if not in July, so they should give concrete proposals to improve the bill.