Endorsing a major demand of All Pakistan Traders Alliance (APTA), the Central Board of Revenue (CBR) has decided to approach Water and Power Development Authority (Wapda) for giving monthly details of GST for the full fiscal in the electricity bills of June, making it simple for business community to attach only one bill along with the yearly income tax return.
In a daylong meeting CBR high-ups including Chairman CBR Abdullah Yusuf and Member Direct Taxes Vakeel Ahmed Khan at the CBR Headquarters on Wednesday, the alliance representing small and medium entrepreneurs from all four provinces agreed with the viewpoint of Vakil on certain issues relating to income tax. Member Direct Taxes resolved all the income tax related issues like audit, refund, documentation and other matters on the spot.
When this corespondent contacted Member Direct Taxes late on Wednesday night, he confirmed that the CBR will take up the matter of giving monthly detail of 11 months tax in the bill of June with the Member Finance, Wapda.
Vakil said that the CBR and Wapda would workout the modalities so that the businessmen should not submit all the 12 months bills with the tax return. If Wapda agreed for the implementation of the CBR proposal, it would simplify the documentation for the traders, Vakil added.
Responding to a question of introducing 'development tax scheme' in budget, he said that the CBR does not favour fixed tax schemes under the ongoing reform process. The 0.75 percent development tax is not a viable proposal.
After meeting representative of traders alliance told Business Recorder that the tax authorities have assured the traders that their genuine demands would be favourably considered in the coming budget.
Alliance has proposed to the CBR to introduce 'development tax' in the budget for collection of income tax and sales tax from the small traders including retailers.
This proposal was agreed with traders by previous government on September 9, 1999.
Traders claimed that the CBR has assured the alliance that the income tax returns of the businessmen having annual turnover below Rs 150,000 would not be selected for audit.
The returns would be selected on the basis audit parameters.
Representatives of the alliance further said that traders availing self-assessment for the last 4 years and having annual turnover above Rs 150,000 would be considered as potential taxpayers.
They further said that the CBR has agreed to settle income tax cases filed prior to 2003 and pending in appeals/tribunals on priority basis.
On the issue of refund, the CBR has already issued instructions to commissioners for issuance of refund.
In this regard, CBR has given deadline of June 30, 2004 to the Regional Commissioners of Income Tax (RCITs) for settlement of refund claims involving small amount, traders added.