Revenue Board starts Budget preparation exercise for 2004-05

The Central Board of Revenue (CBR) has started budget preparation exercise for fiscal year 2004-05 in consultation with the private sector federation and chambers and field formations.
Official sources told Business Recorder here on Sunday that the CBR has made improvement in the budget exercise 2004-05 as compared to previous years' practices.
Only viable taxation proposals floated by business community would be considered and incorporated in the budget.
This year, CBR has asked the business community that while pointing out tariff anomalies, the requisite cost comparison should also be made by working out landed cost of imported items.
Sources said that every year private sector submits a large number of proposals regarding cases of tariff anomalies, but absence of statistical data results in extra burden of work on tax authorities.
The CBR has sought budget proposals for formulation of annual budget 2004-05 from Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Karachi, Chambers of Commerce and Industries of Karachi, Lahore, Quetta, Peshawar, Faisalabad, Gujranwala, Islamabad, Sialkot, Rawalpindi, Multan and Hyderabad.
The private sector can submit proposals in the light of existing Import Policy, Customs Tariff, Customs General Orders and SROs.
The proposals should be duly supported by statistical data from relevant sources so that no proposal may be dropped on this account.
Sources said that CBR has asked the collectors that proposals regarding changes in the 'List of Locally Manufactured Items' given in customs general order (CGO) 12/2003 will come through Engineering Development Board (EDB).
The CBR has also sought viewpoint of tax collectors to curb the menace of smuggling and dumping of low quality products in the country.
Moreover, effective measures would also be taken in next budget to further curtail the possibility of under-invoicing as well as over-invoicing through amendment in the custom laws.
Changes in Pakistan Customs Tariff (PTC) and reduction in custom duty on import of items under South Asian Preferential Trade Agreement (Sapta) for Saarc member countries and Least Developed Countries (LDCs) will also be given due priority during budget 2004-05 preparation.
Sources said that the CBR would not incorporate any proposal of tax consultant Maxwell Stamps in the next budget as it is engaged in devising mechanism to revamp the tax administration, which is not directly linked to revenue measures.