20000102

CBR, FPCCI discuss ST Act problems

RECORDER REPORT

KARACHI: Riaz A. Malik, Member, (Co-ordination), Central Board of Revenue, on Saturday held over three-hour meeting with over 55 members of the FPCCI and representatives of various trade and industry associations to discuss the problems being faced by them under the Sales Tax Act.

At the meeting which was presided over by Mahmood Ahmed, Acting President, FPCCI, Riaz Malik informed that he has been entrusted with the responsibility to streamline the sales tax law, rules and regulations and in fulfilment of his responsibility he would be meeting the representatives of various industrial and trade associatioins to get their inputs.

This was the first in a series of meetings to be held in next four to five months. The meetings will also be held on Sunday also.

The participants, which included FPCCI Vice-President Maqsood Ismail and former presidents Tariq Sayeed and S.M. Muneer highlighted the major irritants created for the trade and industry by the sales tax officials and said that unless these were removed on prority basis there could not be any economic revival as desired by the present government.

They pointed out that the three percent additional sales tax on sales to non-registered persons be withdrawn and the present sales tax rate of 15 percent be reduced.

They called for one audit during the same period as closed transaction with minimum records. Further the penal clauses, whose implementation is creating panic among the trade and industry, should be suspended.

There was consensus that the demand notices issued on flimsy ground by the Sales Tax Department should be withdrawn.

It was pointed out that the economic situation today was worse than that obtaining before October. This was a resulted from the harassment and high handedness of the sales tax authorities, the participants, pointed out.