PAC Discloses Failure of Inland Revenue Dept, In Assessing VAT Registered Persons & F Institutions

PAC report submitted in Parliament yesterday disclosed that the Department of Inland revenue has failed to correctly  assess Value Added Tax (VAT ) registered persons  and Financial institutions. While current VAT registered persons numbered 15, 696,  VAT registered Institutions  numbered   229 .   The Public Accounts Committee  (PAC) felt that these numbers do not represent  the actual situation. Same situation exists in respect of corporate taxes too. PAC observed  that cargo  clearance by the  Customs  dept had not  to progressed to a satisfactory level. Two percent of the consignment  that were checked by customs have had issues when it  came to clearance . Finally the PAC recommended that the Minister of Finance should come up with an effective mechanism to collect state revenue and to  brief  PAC every three months on the mechanism.