Adding value to tax revenue?

Value added tax; there is no such data available but it might possibly be amongst the most searched words in the Pakistani business circle in the last couple of months. Revenue collectors are pitching it and the business community is opposing it to some degree. What about the rest? There seems to be a general confusion about the difference between what is and what will be, in terms of tax.
"VAT is another name for General Sales Tax (GST) and there is nothing new for the business community to worry about. 34 countries from all over the world are benefiting from VAT and there is no other option to extend the tax net," Chairman FBR said in a recent meeting with the business community.
The obvious question pops up in the mind that if there is really no difference between the current regime and the proposed one, whats the point in spending time, effort and more importantly a whole lot of money for its implementation?
Experts in the industry confirm that apart from nomenclature, GST and VAT are not entirely different systems. "Essentially both achieve the same objectives," claims a senior professional accountant.
Instead of taxing the entire transaction causing a cascading effect; only the value added along the chain of production is taxed. The end consumer still bears the same, if not a heavier, tax burden.
General sales tax act of 1990 is proposed to be repealed in favour of the VAT Bill of 2010. Tax law experts believe that from a legal standpoint, the prevailing act is sound. Over the 20 years of its imposition, the economy has changed and certain aspects may require improvement; not an entirely new law.
Leaders in the business community have strongly opposed the bill, not because they are opposed to contributing to the revenue department, but because they are not happy for being overlooked for the drafting of the law.
Many industries, under the general sales tax act, enjoy tax breaks. The poultry industry, providing eggs and chicken is one such sector. When the subsidy is removed upon VAT implementation, prices for poultry products are projected to rise by as much as 40 percent.
Claims of massive improvements in revenue collection to the tune of Rs.700 billion rupees are being asserted by the FBR. A senior official in the same department believes that no measurable gains would be witnessed in the short run and there might be some long run benefits.
So much for the lengthy exercise, one may ask.