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ISLAMABAD, June 21: The government has introduced an automated collection system of all four federal taxes through all branches of State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP) to be effective from July 1, 2005.
CBR official spokesman and Member Facilitation and Tax Education Habib Fakhruddin told reporters here on Tuesday that the condition of filing of a challan for the payment of taxes had been withdrawn from next fiscal year.
However, he said that all taxpayers would have to provide the relevant information at the time of depositing their taxes in these banks. While the taxpayers would receive a receipt from the bankers mentioning the amount of tax paid against the particulars.
He said that under the new system, National Tax Number (NTN) would be mandatory for payment of all four taxes — Income Tax, Sales tax, Federal Excise and Customs Duty. However, individual taxpayers without NTNs could make payment by quoting their CNIC number.
Fakhruddin said the NBP had already started implementation of the new system at some of its branches where special counters had been set up to receive tax payments.
The CBR, for facilitating the taxpayers, has decided to accept the payment of taxes without NTN/CNIC number up to June 30, 2005.
The member clarified that from July 1, tax payment without NTN/CNIC number would not be accepted in the new automated system. Moreover, the requirement of NTN/CNIC would also be essential for verification of tax payments and refund.
He, however, advised taxpayers to get their NTN/CNIC to fulfil this requirement as early as possible.
NEW ST RULES: The Central Board of Revenue (CBR) has issued new rules for collection of three per cent sales tax at retail stage of five sectors.
These rules — Payment of Sales Tax by Retailers of Specified Goods (Special Procedure) Rules, 2005 — were notified through a notification SRO539 issued here on Monday.
The government in the budget 2005-06 had levied sales tax at the rate of three per cent ad valorem at the time of supply or sale of textile fabrics, textile made-ups, garments and articles of textile including home textile, articles of leather, carpets, surgical goods and sports goods.
Under the rules, all the retailers of these sectors having turnover of more than Rs5 million would require to register themselves with the sales tax department.
A retailer operates different branches, divisions, or retail outlets at more than one places, he should apply for registration to the collector having jurisdiction over the place where his head office was located.
No registered person would be entitled to adjustment of tax charged on his invoice or cash memo by a retailer operating under these rules. Every retailer operating under these rules should furnish monthly return for a tax period in the designated branch of National Bank of Pakistan.
In case any retailer files return after due date or fails to make payment of tax or makes short payments, he shall be liable to pay penalty or default surcharge under the Act.
