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CBR to pursue sales tax collection from cigarette industry

ISLAMABAD (April 27 2004): To meet the revenue target during current fiscal year, the Central Board of Revenue (CBR) has decided to aggressively pursue sales tax collection from the legitimate cigarette industry.

Sources here on Monday quoted Board-in-Council decision, saying that GST collection from cigarettes industry was not satisfactory as compared to raise in the central excise duty (CED) on cigarettes during March, 2004, and directed the sales tax department to submit report as to why sales tax on cigarettes was not keeping up with the increase in excise duty on cigarettes.

The CBR has also decided to examine the tax yield from electricity and adjustment of sales tax on POL/furnace oil.

The Board-in-Council also decided that the income tax officials would submit paper regarding present “advance tax system” which does not allow the facility of filing estimates of income.

The department would also submit the impact of reduction in tax rate (on refunds) in the next/following year.

It was decided that the departmental training at Directorates of Training would be the last part of income tax and customs group probationers' training. The present batch of probationers of income tax and customs groups undergoing training at the respective Directorates would be posted out on completion of their training. There would be no curtailment in their Training at Directorates.

From the next batch ie the batch which is at present undergoing common training program at the Civil Services Academy (CSA) and is expected to complete the training by November, 2004, would be deputed for training at IBA.

After completion of training at IBA, the batch will undergo departmental training and take Public Service Commission's final passing out examination.

The Board-in-Council decided that there was substantial difference in the customs probationers training program and that of income tax probationers.

It was decided that syllabus of customs probationers training program should be reviewed. The Directorate of Training Customs will carry out the necessary study and present it to the Board-in Council.

Zafar Aziz Osmani, Member Human Resource Management (HRM), will co-ordinate the co-location of training facility and examine to what extent they can be purposefully co-located.

On the issue of vigilance unit, Board-in-Council decided that the role of the vigilance unit would be ascertained, keeping in view the ongoing reform process.

The CBR directed the Director General Intelligence and Investigation Customs to discuss the issue with the CBR Member Tax Policy and Reforms M.S. Lal to decided the role of vigilance unit in the light of revamping strategy.

The proposal should focus on the objectives of the proposed set up, its organisational structure and manning of various positions. Besides, the present system of intelligence, investigation and integrity management should be reviewed vis-à-vis future role of CBR after the reforms.

Major General Usman Shah made a presentation regarding establishment of a Vigilance Wing and its role before the Council. After discussion it was decided that the proposal needed further clarification and consideration.

It was decided that line members will nominate one B-20 officer to help DG (I & I) in his study and preparation of the report.

Board-in-Council also decided that all proposals relating to restructuring of Pakistan Revenue Automation Limited (PRAL) should be brought before its Board of Directors.

Board-in-Council noted that presently there were different audit environments prevailing in each tax.

There was need to replace them into a simple uniform environment. The concept of audit and the issue of reporting lines needs to be discussed and should be taken up at another meeting with the DG Inspection and Audit Income Tax and Customs.

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