20000321

ST procedures

being simplified

in next budget,

traders told

RECORDER REPORT

KARACHI: Ramzan Bhatti, Collector, Sales Tax (West), has informed the business community that the government is streamlining and simplifying its sales tax procedures in budget 2000-2001 by cutting down the rate of penalty and additional tax.

Addressing the participants of a one-day workshop organised by the Site Association of Industry (SAI) for awareness of sales tax procedures and regulations on Monday, he said that the government was also adopting strict measures for collection of information regarding sales tax and its payment. For this purpose, work of the Sales Tax Collectorate (West) would be bifurcated to two Assistant Collectors, he added.

Stressing for cooperation between tax collectors and tax payers which was the need of the time. Bhatti said that record of 5 years was maintainable and could be audited by audit agencies. Sales tax is payable on insurance, on moveable assets of the company if disposed of, sales tax shall be charged, if machinery is being used for making taxable goods and input tax can be claimed.

About the issuance of 2600 show cause notices under Sec. 38 by the department, Bhatti said that notices had been issued to those industries whose out-put tax was less. If output tax is more, notices would be withdrawn. The object of issuing notices was to know the reasons of less output. If industrialists gave suitable reply, the department would accept them and no punitive action would be taken.

Regarding claims of sales tax on electricity and gas, Bhatti said that comprehensive rules for change of name were being issued by the Central Board of Revenue (CBR). He also assured the business community that refund claims would be settled within 30 days. About claims of past input, he said that he had written to CBR to allow adjustment in next month and a clarification was awaited.

Tariq Huda, Additional Collector of Sales Tax (East) explained the historical perspective of sales tax from Pakistan General Sales Tax Act 1948, Sales Tax Act 1951, inclusion of goods imported, exported, produced, manufactured or consumed, Sales Tax Act 1990, a value added tax type system (VAT), bringing manufacturers and making taxable supplies in Pakistan into tax net, including importers.