KARACHI, July 26: Finance Minister, Shaukat Aziz on Saturday announced withdrawal of SBP circular BPD-22, which had bound the financial institutions to report to the Central Board of Revenue (CBR) return or profit, if it exceeds Rs10,000, paid to clients.

The minister made this announcement while talking to a delegation of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), led by its president Riaz Ahmed Tata, which met him at the State Bank.

Other issues relating to sales tax were also taken up in the meeting.

It was decided that CBR would issue instructions to its field formations for immediate redressel of grievances faced by the tax payers with regard to provision of Section 73 of the Sales Tax Act. This would remove the difficulties regarding cheques issued in the last three to four days of a month.

According to an FPCCI’s press release, it was also decided that all the manufacturers, not operating under any of the survey schemes of the CBR, would be excluded from the purview of SRO507. The finance minister also invited the FPCCI to select industries presently operating under survey scheme for similar exclusion from SRO507 on trial basis. Shaukat Aziz asked the FPCCI to nominate representatives in each zone that would accompany sales tax officers visiting the premises of taxpayers.

He also asked the FPCCI to send self-contained proposals with regard to further tax and SRO554 and other issues so that instructions are issued aimed at facilitating smooth conduct of business.

The finance minister assured the business community that the government believes in mutual interaction with the business community.

He said macro-economic indicators showed a growth of five per cent during 2002-2003 and is expected to go above 5.3 per cent or more in the current financial year. The revenue follows the growth. The economy is on upsurge and market is buzzing with trade activities. Enhanced sales of consumer goods would augur well for the overall economic scenario, he added.