ISLAMABAD, Dec 30: The chairman, Central Board of Revenue (CBR) M Abdullah Yousuf has said government is considering a proposal to adopt the Korean model of sales tax in the country to overcome the shortcomings of the existing system.

He was talking to the representatives of the Gujranwala Chamber of Commerce and Industry (GCCI), according to an official announcement issued on Thursday. "The Korean model of the sales tax is perhaps the most appropriate for us and we are going to adopt that," the chairman said.

Mr Abdullah said that the existing 15 per cent general sales tax (GST) rate was more than the average and, therefore, would be reviewed. He, however, said that in some countries of the south region, the GST rate was up to 18 to 19 per cent.

The chairman said that government has already constituted a committee to review the overall taxation structure. The decisions and recommendations of the committee would be included in the forthcoming budget for the fiscal year 2005-06.

He said that the customs administration reform project would be operational from March next year, which would allow importers to file bill of entry electronically. Through this system, they would be able to clear the goods even before the arrival of the ship.

He said that the universal self-assessment scheme introduced for income tax and sales tax have produced encouraging results. Meanwhile, in a meeting with representatives of All Pakistan Cutlery Manufacturers and Exporters Association, the chairman said the government has decided to review its economic policies particularly taxation structure in order to give boost to the country's exports.

About the demand of early refunds payment, the chairman said that the staff concerned has already been issue necessary directives in this regard. System and procedures are also being simplified, which would also greatly help to clear the pendency.