KARACHI, Feb 18: The All Pakistan Textile Mills Association (Aptma) and Income Tax Department have agree to set up a joint consultative committee to review all tax cases before going to appeal.

An understanding to this effect had been reached between both the sides during a visit of the Regional Commissioner of Income Tax (RCIT), corporate region, Shahid Jamal to Aptma head office here on Monday.

The chairman, Aptma (Sindh-Balochistan zone), Mushtaq Vohra, who presided over the meeting, raised issues and irritants confronting textile industry with regard to tax and suggested the formation of joint consultative committee.

He said there is no rationale in asking companies to make compulsory declaration of dividends and high rate of penalties for small and negligible errors and omissions mostly committed because of overlook or miscalculation by taxpayers.

Mushtaq Vohra also urged the RCIT Shahid Jamal to issue exemption certificate for one full year instead of being given per import consignment.

The regional commissioner agreeing to the suggestion of setting up a joint consultative committee asked the Aptma to give the names of their members for constituting the committee.

However, Shahid Jamal did not agree with Aptma members for issuing exemption certificate for entire year and said under Section 50(5) it has to be on the basis of L/Cs, type and nature of each consignment.

Undoubtedly, he said, Section 12-9A is a bad law as it makes dividend declaration compulsory, but had been introduced to protect small shareholders’ right.

In order to ensure that tax credit is given, the RCIT said, assessments for the year 2001-2002 are being computerized and ledgers would be maintained to make the process effective.

Shahid Jamal said once the tax credit is given the payment of refund would automatically be realized and paid to taxpayers. Similarly, he said, where appeal effects or relief is given the case will be immediately set aside.

Referring to Section 66-A, the regional commissioner said that no quota for the issuance of notices under this section had been fixed and on the contrary the income tax officers are now being taken to task for issuing notices under the section.

In this regard, he said an ITO, who is not supposed to issue notices under section 66-A, has been recently charge-sheeted and assured that under changed policy the department will try to promote voluntary compliance.

The RCIT who was accompanied by Commissioner Special Zone, Aneesul Hasan Musifee informed the Aptma members that Sales Tax and Income tax will be handled under one roof and this will assist taxpayers as well as collector to give better performance.

He said that under the restructuring of CBR it the interaction between taxpayers and tax collectors would be minimized, and revenue staff should be delegated towards removing irritants and resolving of problems confronting taxpayers.

Former Aptma chairman Anwar Ahmed Tata strongly protested over the valuation of manufactured goods. He said there cannot be one yardstick to measure the value of goods as each industry or unit’s cost could vary depending upon inputs it has used and the quality of its finished product.