ISLAMABAD, May 8: Central Board of Revenue (CBR) Chairman M. Abdullah Yousuf has asked sales tax collectors to curb tax evasion and take steps to speed up revenue collection drive and expand the tax net. Addressing the fourth quarterly Conference of Collectors of Sales Tax and Central Excise here on Sunday, he said: “The domestic sales tax collection has shown no growth during the first 10 months of the current fiscal year.”
The sales tax collection at domestic stage has declined by 3.5 per cent in the July-April period of the current fiscal year against the corresponding period of the previous financial year.
Mr Yousuf asked the collectors to evolve a strategy to target the potential sources for enhancing revenue collection. “We have to adopt a pro-active approach and need to make the whole exercise industry-specific,” he maintained.
He was of the opinion that the tax base could be expanded provided serious efforts were made by field officers to collect credible information about the production potentials of the industrial sector particularly the major industries.
The chairman took a serious note on reports submitted by sales tax collectors, regarding short filing of tax by millers. “It is not acceptable,” he said and added: “They have no right to keep the money, which they have collected on behalf of the government.”
The chairman directed the collectors to recover all outstanding amount in this regard and deposit it in the government treasury.
Mr Yousuf asked the collectors to clear the pending sales tax refund case as early as possible. “We have to be transparent and open, and address all the genuine complaints,” he said, stressing the need to avoid unnecessary litigation with the taxpayers.
The conference was told that large taxpayers unit (LTU), Karachi, has introduced e-filing of sales tax return in collaboration with the National Bank of Pakistan.
The chairman hoped that the set targets would be achieved. He urged the collectors to put in more efforts as the next two months were more crucial regarding revenue collection to meet the target.
Mr Yousuf asked the collectors to come up with suggestions and proposals to enhance tax base.