KARACHI, Sept 22: Central Board of Revenue Chairman Muhammad Abdullah Yousuf has complained of non-cooperation from traders, industrialists and the corporate sector in tax payments despite the fact that the government has carried out wide-ranging reforms in economic policies and tax collection procedures and reduced the number of taxes.
“I do not see any problem in achieving the target if taxpayers pay their taxes sincerely,” he stated while speaking to members of the SITE Association of Industry here on Wednesday.
The CBR chairman said the government had gone out of its way to provide facilities to the business community and restored their confidence, but the response of businessmen was extremely poor and they were not coming forward to own their responsibilities, says a press release of the Site Association.
The government had succeeded in collecting Rs78 billion revenue in July and August 2005, which was more than the target fixed by the government, he said, adding that a revenue of Rs70 billion was received in September 2005 and if the same trend continued the government would achieve the target of Rs690 billion by the end of the current fiscal year.
Mr Yousuf said the CBR with the help of the World Bank was bringing out reforms in the tax department with a cost of $150 million, out of which the World Bank had given $100 million, while the shares of British and Pakistan governments were $25 million each.
About delays in sales tax refund claims, the CBR chairman pointed out that this was the only problem which still remained unresolved and assured the claimants that they would get refunds as quickly as possible. He said there were 1,150 cases of refunds, out of which 600 had been settled and Rs3 billion had been paid to the exporters. “As many as 500 cases are under process and Rs1.4 billion will be paid. The CBR wants to close this chapter by October 15.”
He pointed out that 650 companies had been reconciled and notified zero-rated. In a reply to a question, Mr Yousuf says the claimants may get refunds within seven days on receipt of utility bills without any notification.
Instructions have been given to the sales tax collectorate (enforcement) that all manufacturers-cum-exporters who have been made zero-rated sales tax from July 1, 2005 have also been declared zero-rated for the payment of sales tax on utility bills. The refund claims submitted by them should be paid within the specified period.
An exporter is required to submit claim application with the copy of paid utility bills along with a recommendation letter from the association concerned.
Regarding a discrimination in incentives between the existing small companies (registered before June 30, 2005) and small companies registered on and after July 1, 2005 (Section 153(5)(d) read with 2(59A), Mr Yousuf said the CBR was looking into the possibilities to resolve it.
On acute shortage of caustic soda and its black marketing, he said that he was aware of the problem and the CBR had submitted the recommendations to the National Tariff Commission and it was hoped that the commission would give its verdict soon.
