Certain leading businessmen, Inland Revenue officials and Finance Ministry officials involved in the budget preparation have met to discuss the deal, and reportedly agreed the amount of commission to be paid in lieu of the goods and services to be exempted from the tax.
The president has received a complaint about this plan and an investigation is underway, say presidential secretariat sources.
The identity of the certain officials involved has been revealed.
The presidential secretariat has instructed the relevant authorities to prevent this fraud, warning of strong action if anyone attempted to get undue VAT exemptions.
Furthermore, no interventions are needed on account of jewelry prices, as gold, platinum, gems, pearls and diamonds are exempted from the VAT, said the sources.
The VAT, increased from 11 per cent to 15 pc, is effective from November 01, but 82 goods and services have been exempted from the tax.