ISLAMABAD, Aug 1: The government has decided to merge the central excise wing in sales tax department as part of re-structuring of the tax administration.
An official source in the Central Board of Revenue told Dawn on Saturday that in this connection the post of member, central excise duty has been abolished and all the administrative and other functions of the CED department would come under the control of the member sales tax.
The official said that the current member central excise was due to retire by September and it was decided that no separate member will be appointed for the tax. Similarly, the government has also abolished the post of member coordination at the CBR.
Justifying the need of the merger, the official said that it would not only cut expenses but would also act as an incentive for the taxpayers. He said that "the mode of collection of CED would almost be similar to that of sales tax collection".
There would be no more separate collectorate for the central excise duty and all the existing staff would be adjusted in other departments, the official added. The official was of the opinion that no more CED would be converted into sales tax, as the government would not be in a position to cover up the loss incurred in case of complete abolishing of the CED.
