LAHORE, Sept 6: The Central Board of Revenue, which has registered 2,000 new sales taxpayers, intends to automate the ST system in order to enable the taxpayers file their returns through internet for minimizing human contact.

This was stated by CBR member (sales tax) Shahid Ahmed at a seminar on "the budgetary changes in the Sales Tax Act, 1990" here on Monday. He said the CBR was developing software and drawing up the procedure for implementing this programme.

He said the CBR had simplified the sales tax procedures and minimized the contact between the taxpayers and the collector. The taxpayers of turnover below Rs5 million had been de-registered and various irritants, including section 73, had been removed, he said.

Mr Ahmed conceded that the 10 per cent value-addition clause was not realistic and asked the chambers to give their recommendations on the industry-wise value-addition so that the tax returns could be rationalized. He said the government planned to simplify tax compliance system.

Answering a question, he said income tax officials did not accept the sales tax documentation, while both sales tax and income tax departments were integral parts of the CBR. He also admitted that there was a need to develop a policy to provide facilities to the taxpayers.

Earlier, LCCI President Anjum Nisar drew the attention of the authorities towards the problem of value-addition being faced by retailers after the issuance of SRO 673(I) 2004 under which a 10 per cent value-addition has been made mandatory.

He pointed out the plight of a large number of retailers like motorcycle retail traders, the steel sector, retailers of electronics, electrical goods, cement and construction materials that could not show that high rate of value-addition.