Sales tax system may increase corruption: QTI

17 Jun, 2005

President Quami Tajir Ittehad (QTI) Shaikh Muhammad Mushtaq has said the federal budget 2005-06 has aggravated the traders and importers' problems, as sales tax system has been made more complicated, which would increase corruption manifold. In a statement Mushtaq demanded of the government to restore the column of carry forward in the sales tax return form. Terming the decision of submitting refund claims every month as impracticable he said it would also promote corruption in the department.
The sales tax audit should be carried out on annual basis instead of monthly basis, he added.
He also urged the government to withdraw the discretionary powers of the sales tax officer under section 40 of the Sales Tax Act. The constitution of Pakistan ensures protection of 'chadar aur char dewari', while the powers vested to ST officials under section 40 are contrary to the constitutional provision, he maintained. 'It is apprehended that discretionary powers under section 30 would cause conflict between the business community and government officials, therefore, the same must be withdrawn immediately', he added.

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