The Economic Co-ordination Committee (ECC) of the Cabinet has directed the Central Board of Revenue (CBR) to introduce 18 amendments in the customs laws, statutory regulatory orders (SROs) and rules/procedures to rectify errors following suggestions of the business community to the anomaly committee.
Sources told Business Recorder on Saturday that the CBR has started working on changing the concerned notifications on the directive of the ECC. Sources said that the Board had informed the ECC in its last meeting that an anomalies committee, headed by Advisor to the Prime Minster on Finance, had been set up to examine tariff anomalies, if any, on account of the 2006-07budgetary measures.
The committee received 70 cases/representatives from different quarters, including ministries, trade bodies, individuals and firms. The committee value-addition, the commercial importer shall pay the balance amount of tax payable on such excess value-addition, to be calculated in the manner specified in the prescribed quarterly return. In no case, the commercial importer shall be entitled to refund sales tax paid on such higher value-addition.
As per revised quarterly sales tax return, the commercial importers would submit the cost of sale transactions during a quarter under the column of stock position for imported taxable goods (non-zero rated) for the quarter. They would also submit the sales tax as per invoices and adjustment for invoices where value-addition is less than prescribed 15 percent or 10 percent, as the case may be. In this case, adjustment for each invoice is the amount of sales tax payable on difference of prescribed value-addition and actual value addition.
Under the stock position for local taxable goods (non-zero rated) for the quarter, the commercial importers would submit information about the adjustment for invoices where value-addition is more than 5 percent. For non-zero rated sectors, the adjustment for each invoice is the amount of sales tax payable on difference of actual value-addition and prescribed 5 percent value-addition.