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GST problems discussed

RECORDER REPORT

ISLAMABAD: Various problems related to the general sales tax (GST) were discussed between the Multan Chamber of Commerce and Industry (MCCI) and of the Central Board of Revenue (CBR) Sales Tax Member Riaz Ahmed Malik during his visit to the MCCI on Wednesday, a press release of the CBR said.

The CBR official explained to the retail traders that necessary change in law and procedure will be introduced in budget 2000, in order to streamline and simplify the GST system without compromising government's objective of documentation of economy through a VAT-type system.

The meeting aimed at understanding the difficulties and apprehensions of traders regarding extension of the GST to the retail level.

Riaz Malik said that the GST system will aim at reducing the discretionary powers of the tax officials and thus reducing corruption and harassment.

Regarding development tax, Riaz Malik clarified that this tax was scraped by the Federal Cabinet in December 1999. The enforcement for enrolment by retailers with annual turnover below Rs 5 million will be started after resolution of genuine difficulties.

Riaz will have similar meetings with the representatives of retailers at Faisalabad, Hyderabad and Karachi during his tour.