20000106

Payment thru cheques

Govt urged to put

new ST order

in abeyance

for six months

RECORDER REPORT

KARACHI: The Council of Textile Associations (CTA) has urged the government to put in abeyance for six months the new Sales Tax order, which makes all payments by exporters and manufacturers mandatory through cross cheques in order to become eligible for refunds.

CTA convenor S.M.A. Rizvi, in a letter to the Federal Finance Minister said that the exporters-cum-manufacturers were already registered with the Sales Tax department and had fully documented accounts which were also audited by the department concerned .

He also said that the new order would create innumerable problems for exporters including payment of utility bills which were generally received very late as well as due to inefficiency in crediting of payments made through cheques in proper accounts. Now the sales tax on utility bills were also adjustable and refundable. What would be the status of these bills if paid in cash? he asked.

Rizvi pointed out that most often the payments for inputs and supplies were made on long credit basis. There was an apprehension of harassment by Audit and Refund departments of sales tax in such cases .

He said exporters-cum-manufacturers were really under great strain on account of never-ending regulatory orders from the Central Board of Revenue and he would request that before issuing further notifications

exporters-cum-manufacturers should be taken into confidence and a proper and hassle-free simple VAT system be chalked out so that both the government and the business community were satisfied. As far as documentation was concerned, "we would go to the extent that all payments to any body, over Rs. 50,000, be made through cross cheques only," he concluded.