Under IVIBC System price of commodities and service will reduce from 20-50 % as compared to the prevailing prices, which reduces the inflationary pressure and move consumer to saving-investment mode as purchasing power increases.
Registration
Any individual or business entity one can register under this system in any of the following categories. While registration question of sources of funds and utilization of coupons shall not be asked.
Category I
It is difficult for small traders and specially retailers to buy large quantities (annual requirement) of coupons in the first month of the fiscal year. Under this category they can deposit a registration fee of Rs. 100,000/- in the first month. This will entitle business for 100,000 coupons per month at the special rate of 6 through the year.
Category II
All businesses who pass their goods and services onto an end user i.e. consumer can register at the start of the year for Rs. 10,000/- (minimum). This fee entitles the business to get 20,000 coupons for Rs. 3,333/-.provided 10,000 are coupons collected during the month which shall be surrendered and exchanged with new coupons without any additional cost.
A registration fee of Rs. 100,000/- entitles businesses to buy 3 times the number of coupons collected at the special rate of 6.
So higher the registration fee, more coupons at cheaper rate can be available. Therefore the seller will be eager to sell merchandise at actual cost plus coupons. The number of coupons required by the seller depends upon their needs. On the other hand, customer would prefer to pay more coupons to purchase merchandise that reduces the price.
Category III
This category includes businesses that establish a special relationship with the PIVIF by agreeing to sell their entire output to the PMF for pre agreed market prices plus 5 % cash or 15 % coupons. This will entitle them to import all their materials and other needs into Pakistan duty free, equal to what they sell to the PMF or buy cheap coupons through out the year. The quota for the amount sold through PMF will be 10 times of registration fee. The combined effect of duty free options and cheap coupons will cut the production cost to more than 50% hence every thing produced in Pakistan will be at least 40% cheaper when there is also Zero tax. ( See diagram next page) |
Benefits to Consumer
