07 August 2004	Saturday	20 Jamadi-us-Saani 1425

ISLAMABAD, Aug 6: The government in its efforts to broaden the tax-base regime has taken steps to simplify the existing tax system. A CBR official said the steps includes to simplify the procedures for registration , return filing, refund and record keeping.

It had also introduced a simple scheme for payment of tax by different categories of taxpayers like retailers, steel melters and re-rollers. Consultation proceedings before making any significant change in law and procedure was also an important step for the stakeholders, besides printing of sales tax pamphlets.

The official said that the CBR was arranging seminars and meetings with various groups and association of taxpayers to explain legal procedures, which would also help to enhance the tax net in the country.

About the steps taken in the area of Central Excise, he said in order to facilitate the taxpayers, adjustment of central excise duty paid on raw material/semi-finished goods, imported or locally produced, against the central excise duty payable on finished goods had been allowed by only entering the amount of duty paid in the Account Current Ledger (ACL) and no other documentation was required.

In the past, he said, under the Central Excise law it was mandatory to print the retail price on goods liable to central excise duty on retail price basis, but at present the condition had been relaxed and the manufacturers or importers were required only to indicate the retail price. Besides, the penalty for non- compliance of the condition had also been reduced from 100pc to 40pc ad valorem, he added.

All excisable units except cigarette and cement were working on self-clearance system. No staff had been posted in the factories for clearance of excise dutiable goods, he remarked.

Under the Central Excise law the manufacturers of excise dutiable goods and service providers were required to obtain central excise licence after payment of specified fee and were also required to renew the same every year on payment of prescribed fee, he added.

To simplify the system the requirement of renewal of central excise licence had been dispensed with, he said. Earlier the manufacturers were required to maintain raw material account and submit a monthly return for the same, he added.

In order to minimize documentation, a number of prescribed returns, clearance documents had also been dispensed with, he said. About the steps taken in the area of Customs, he said the Pakistan Customs had also taken some measures to simplify the tax system. -APP