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Taxing Taxes

The government firmed up plans announced in its 2002 budget through its latest fiscal forecast on Wednesday.


rnThe retail and wholesale trade will be slapped with Value Added Tax while the scope of the Withholding Tax was expanded.rn

rnHowever, landing VAT on financial services and the continuation of the port and airport development levy came under fire from the financial sector and exporters.rn

rnExperts say the government is desperately trying to maintain its revenue base while trying to encourage growth.rn

rnCompanies use tax consultants to minimize their tax liabilities.rn

rnExperts looking at corporate income tax records say these tax planners should be among the best in the world. Because very few local companies pay taxes despite, submitting returns.

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Around 65 percent of returns filed have reported tax losses.rn

rnldblquote Some companies which declare tax loses or profits to the share holders and to the public. On the basis of ability to pay tax these companies must pay tax, dblquote

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