KARACHI, April 24: A model sales tax centre will start functioning at Karachi from July 1 to provide facilities to taxpayers and resolve their problems at a faster pace.

This was stated by member sales tax, CBR, Mohammad Ramzan Bhatti, at a luncheon meeting organized by the Pakistan Hosiery Manufacturers Association (PHMA) here on Wednesday.

He said the CBR had undertaken massive computerization of its entire working to ensure efficiency as well as to check leakages. In this regard, he said a STARR system for payment of sales tax refund claims had been introduced.

He said the rate of 15 per cent GST was the lowest in the world, but agreed that other countries offer subsidies to offset the negative impact of high rate of taxes.

The member sales tax said the government was considering issuing a ruling that taxpayers should pay the 15 per cent GST amount within 120 days to their supplier.

Mr Ramzan said negotiations were being held with the NBP for developing electronic returns of taxpayers that will allow direct payment of tax into the bank account.

Earlier, PHMA (central) chairman Zubair Motiwala drew the attention of the member sales tax towards the fact that rate of 15 per cent GST was too high and was required to be reduced.

He also stressed upon the need for complete structural changes in the sales tax system as attempt to make changes in the present system would not yield any results.

Mr Motiwala suggested the government should negotiate with the World Bank to get some concessions in the framework of sales tax and also demanded for broadening of the tax net.

Aslam Ahmed Karsaz, chairman, (Sindh-Balochistan zone), pointed that due to delay in payment of outstanding sales tax refunds exporters are faced with liquidity problem.