The objectives of the Withholding VAT Scheme are as follows:

1. Decrease the incidence of nil and non-filers: By implementing rigorous surveillance and monitoring, the scheme aims to discourage deceptive practices among those who would otherwise fail to file returns or evade taxes.
2. Minimize future uncollectible debts: The scheme ensures that tax is collected in advance from major consumers, reducing the risk of debts that may not be collectible later.
3. Boost voluntary registration: Knowing that they are under scrutiny, taxpayers are more likely to register voluntarily and adhere to their tax obligations.
4. Enhance government revenue flows: The scheme provides a means for the government to generate revenue while encouraging compliance.
5. Improve overall compliance: The introduction of the scheme has led to increased general compliance among taxpayers.
6. Ensure fair application of tax laws: The scheme promotes an equitable application of tax regulations.