Roadmap on budgetary measures being drawn

The Central Board of Revenue (CBR) is preparing a roadmap on budgetary measures to be introduced in fiscal 2004-05 making tax policy more investors-friendly.
Sources told Business Recorder here on Wednesday that the all the line members would update the new CBR chairman, Abdullah Yusuf, about the budget exercise and policy measures to be taken for next fiscal including tariff rationalisation to make the local industry compatible with the WTO challenges.
The measures would also take into account the commitment with the international donors.
The short and long-term measures for revamping the tax agency will encompass changes in the tax policy and future course of action to facilitate the taxpayers.
The new chairman has repeatedly conveyed his commitment to the CBR officials that the tax policy should be investor-friendly through simplification of law and automation providing secure environment to the foreign investors.
Keeping this in view, CBR Members would submit details about the proposed changes in tax laws to facilitate both the local and foreign investors through simplification of law.
The CBR has already devised procedure for the foreign investors/non-resident companies to obtain 'advance ruling' on income tax matters for avoiding tax disputes. Non-residents companies have been given this facility for promoting foreign direct investment in the country.
Under the plan, the number of withholding taxes will be reduced, many income tax exemptions will go, central excise duty (CED) on certain items be withdrawn, Duty and Tax Remission for Export (DTRE) rules will be simplified, measures will be taken to improve audit capacity, GST regime to be changed for expanding tax net and voluntary compliance and new sales tax refund procedure will be announced for the exporters.
Moreover, discretionary powers of the tax officials would be further curtailed to minimise interaction with the taxpayers.
Following the establishment of LTUs, MTUs and Model Offices, the Dispute Resolution Complex will deal with all the adjudication/appeal cases under one roof to facilitate the taxpayers.
It is learnt that the tax authorities are also examining tax laws applicable in neighbouring countries for extension of general sales tax to new services.
Tax officials have informed Yusuf about the target set for each tax during current fiscal 2003-2004. The percentage of achievement of revenue targets and comparison of revenue collection between current and previous financial years was also submitted to the Chairman.
The CBR has started budget preparation exercise for fiscal 2004-2005 in consultation with the private sector, federation, chambers and field formation. Only viable taxation proposals floated by the business community will be considered and incorporated in the budget.
The private sector could submit proposals in the light of existing import policy, customs tariff, customs general orders and SROs, along with the statistical data supporting their concerns.
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 the import of items under South Asian Preferential Trade Agreement (Sapta) for Saarc members countries and Least Developed Countries (LDCs) will also be given due priority during budget 2004-2005.
The CBR officials are regularly having meetings with the Working Group on GST expansion to finalise the list of new services to be brought under the GST net.