MABAD (Online) - The Federal government has decided to approach the IMF to get more time for imposition of Value Added Tax (VAT), as the Punjab government is of the view that the implementation of VAT would endanger for PML-Ns political survival.
Sindh is already opposing the VAT and Punjab has told Gilani that the new tax would badly affect the vote bank of PML-N. The 80 per cent members of the federal cabinet are against the imposition of VAT and have asked the govt to defer the issue for a year for creating consensus on the issue.
According to reliable sources, Punjab Chief Minister Shahbaz Sharif, on the directives of Advisor to Prime Minister on Finance Hafeez Sheikh, held meetings with traders from across the province to take them into confidence but he was unable in his attempt.
Shahbaz held a meeting with Gilani some days back in Islamabad during which he informed him that PML-N Quaid Mian Nawaz Sharif was also not in support of the new tax due to its political repercussions.
On the other hand, Khyber-Pakhtunkhwa and Balochistan are opposing VAT on the ground that it would increase inflation.
The National Assemblys Standing Committee on Finance has also suggested deferring the matter for a year, as the prime minister is facing difficulties in building consensus.
Sources say the Value Added Tax has now become a political issue and two major allied parties, MQM and ANP, have also reservations over the issue.