Retailers sales tax registration level be raised to Rs 10 million

The Sukkur Chamber of Commerce and Industry (SCCI) has suggested that small-scale units should be exempted from the levy of sales tax on utility bills in 2007-08 federal budget. The chamber noted that small-scale industries are facing great financial hardships due to the levy of sales tax on utility bills.
It has also proposed that minimum limit for retailers' registration under sales tax regime be raised from Rs 5 million to Rs 10 million. The chamber has proposed that registered person showing increase in payment of sales tax as against preceding year of his business activities should be exempted from sales tax audit. This will encourage the non-registered persons to come in the sales tax net.
The SCCI has proposed tax system be simplified fixed tax system be introduced, keeping in mind the present deep-rooted business practices, recognition of low literacy rate and continued decline in business.
The chamber has suggested that filing period of sales tax return should be three months for importers, instead of one month. The registered persons be allowed to submit revised sales tax return for the period where he himself finds an omission, in sales, carryover or input.
In case of a closed factory or business, it should be exempted from the monthly / quarterly submissions of various returns once the information is provided to the sales tax department of this situation. The chamber has proposed that a provision be added in Sales Tax Act providing powers for considering the difficulty in late filing of return for waiver of penalty by collector sales tax.
In order to facilitate the business auditors be allowed to issue certificate for post-audit certifying the carrying out of audit of the registered person.
The SCCI said that general sales tax (GST), which is supposed to be charged from the end-users, in not being paid to the suppliers by some government department/organisations in utter disregard of the provision of Sales Tax Act and standing instructions of the government, and suggested that all government departments should be instructed to comply with the provision of Sales Tax Act.
The chamber noted that system of GST has an inherent need for a certain level of documentation. Most business do keep accounts but they are of a rudimentary nature and cannot meet the standards required under GST.
The chamber therefore suggested that enforcement of value-added GST at retail stage, particularly in respect of documentation, be imposed step by step to bring it to its full-fledged level within 3 to 5 years, and not in one go.