| GEO Business|
| Losses revealed in annual customs duty|
| Updated at: 0926 PST, Wednesday, May 05, 2010|
ISLAMABAD: Advisor of Finance Ministry Saqib Sherani said government has suffered losses of Rs. 200 million each year in recovery of customs duty due to loopholes in the system.
Addressing a seminar on budget proposals, Saqib said government is going to impose Value Added Tax (VAT) to increase tax, however, the VAT will not be implemented on medicines and edible items. He said only five percent VAT will be imposed on some items where 15 percent on remaining items. Government has prepared a list of 800,000 people with lavishing life style but not paying taxes. The proposals of VAT will be finalized within coming few days, he added.