20000203

ST problems solution Dittu thanks Shaukat for directions to CBR

RECORDER REPORT

KARACHI: Fazal-ur-Rehman Dittu, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has thanked Finance Minister Shaukat Aziz, for directing the Central Board of Revenue (CBR) to resolve the problems pertaining to sales tax being faced by the distributors.

In a statement, he said that the minister, who was briefed about the peculiar difficulties of distributors during meeting with the FPCCI delegation on January 22,2000, has directed that the CBR should devise a methodology by February 20,2000, for acceptance of one tax invoice for every day representing all sales on that day to unregistered persons.

According to a CBR circular, the minister agreed that the sales tax collectorates would compile lists, in consultation with individual distributors, about existing stocks of locally produced tax-paid goods as available with each distributor on the day of registration. Such lists would be forwarded by the collectors to the CBR by March 12,2000, so that Member (Sales Tax) and Member (Coordination), in CBR could take decisions in each case regarding admissibility of input before April 30,2000. Only those distributors were covered in this category who had got registered under sales tax act by July 31,1998.

The Finance Minister has further directed that till a final decision, no order is to be passed regarding inadmissibility of input and no recoveries are to be enforced where demands have been already issued or orders passed.

The minister also agreed that sales tax collectors would compile lists before March 12, 2000, of cases of short-payment of sales tax due to enhancement of tax rate from 12.5 percent to 15 percent on December 1,1998 (one day only). The decision would be taken by the CBR Members of Sales Tax and Co-ordination by April 30,2000

It was further decided that the list of cases where further sales tax was not collected and accounted for by such distributors during the period July 1,1998 to July 11,1998, would also be complied by March 12,2000, and decision would be taken by the CBR Members of Sales Tax and Co-ordination.

The FPCCI president also welcomed the decision that all actions in regard to above cases would be held in abeyance till the final decision by the CBR.