LAHORE, Jan 28: The Sales Tax Collector (Lahore region), Ashraf Khan, has agreed to hold sales tax audits on the Lahore Chamber of Commerce and Industry premises to curb growing complaints of questionable behaviour of auditors.

LCCI president Mian Anjum Nisar told Mr Khan at a meeting that the sales tax auditors often demanded irrelevant details and documents, and pressed for higher value addition-based ITP value which was contrary to law.

In response to this, the collector said his department was ready to redefine the parameters for audits in consultation with trade bodies. On complaints of the LCCI members about misconduct and delaying tactics of the auditors, the collector said such cases should be brought to the chamber wherein the auditors would be asked to conduct audits.

He also agreed to set up a sales tax help desk in the chamber to resolve the day-to-day problems. Responding to the complaints about delay in sales tax refund claims, Mr Khan said the sales tax department would host an online module to expedite the process of the refund claims.

To another question on Further Tax raised by the LCCI president, Mr khan said the adjustments of the tax issue would also be resolved. On a demand to apply uniform rates of sales tax across the board without any discrimination as there was 20 per cent sales tax on raw materials and 15 per cent on the finished goods, he said this issue was likely to be settled in the forthcoming budget.

Earlier, Mian Anjum Nisar urged the CBR to minimize documentation required under section 66 to expedite the refund of sales tax claims. "The current circumstances of economic recession, tough international competition and financial crunch in the country coupled with delay in release of the sales tax are aggravating liquidity problem," he said.

The LCCI chief also demanded that the CBR should allow input adjustment on usage of diesel as energy source or raw material for power generation at par with other resources like gas and furnace oil.

He also urged the government to immediately review the registration process of the sales tax to reduce burden of paperwork and encourage healthy business environment in the country.

The meeting was also attended by former president Sheikh Muhammad Asif, Irfan Qaiser, Aftab Mughal, Mian Shafqat Ali, Iqbal Ibrahim, Muhammad Ali Mian, Mian Muzaffar Ali, Shafqat Saeed Piracha, Mubashar Sheikh and Dr Shehla Javaid Akram.