Home » News » Finance » Sales tax registration drive to start next month

Sales tax registration drive to start next month

ISLAMABAD (June 23 2004): To expand the tax base for meeting revenue target of 2004-05, the Central Board of Revenue (CBR) will undertake countrywide registration for bringing more wholesalers, distributors and retailers into the tax net from July, 2004.

Sources told Business Recorder here on Tuesday that major hurdles in the registration of wholesalers and distributors, who prefer to remain outside the tax net, have been removed by abolishing 'further tax' and slashing higher sales tax rates of 18 percent, 20 percent and 23 percent in the budget.

The CBR has issued a directive to all collectorates of sales tax that they should obtain details of wholesalers and distributors of manufacturers dealing in consumer goods like cement and beverages.

After compiling data of different industries, the collectors will register these wholesalers and distributors with the sales tax department.

For this purpose, the collectors will direct these distributors/wholesalers to obtain registration under the provision of Chapter III of the Sales Tax Act, 1990 and rules made thereunder.

The collectorates will set up 'dedicated cells' to ensure maximum registration.

Sources said that the collectors would personally supervise the exercise and update the Board about the progress.

Under SRO. 485(I)/2004, issued in the budget, following persons engaged in making of taxable supplies (including zero-rated supplies) in the course or furtherance of any taxable activity carried on by them, if not already registered, are required to be registered: manufacturers whose annual turnover from taxable supplies made in any period during the last 12 months ending any period exceeds Rs 5 million; retailers whose value of supplies, in any period during the last 12 months ending any period, exceeds five million rupees; importers, wholesalers (including dealer) and distributors; and persons required under any other Federal or Provincial law to be registered for the purpose of any duty or tax collected or paid as if it were a levy of sales tax to be collected under the Act.

Leave a Reply