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CBR to start legal action against sugar mills for further tax

ISLAMABAD (December 17 2002) : The Central Board of Revenue (CBR) has decided to initiate legal action against the owners of those sugar mills who have not charged and deposited 3 percent 'further tax' on the supplies made to the unregistered buyers.

Some of the units are not charging this levy from the undocumented sector while Sales Tax Act, 1990 bounds every industrial unit to charge 'further tax' on the supplies to unregistered buyers.

The CBR has directed regional collectorates to file contempt cases in the judicial fora against the owners of such units who fail to levy 'further tax.'

The authorities have also constituted a committee comprising representatives of mills and sales tax officials to ensure that the sales tax collection should not fall during 2002-2003 against the collection in the corresponding period last fiscal. Input-output ratios, recovery rate of sugar from sugarcane and prices of supplies of various sugar mills should remain constant during 2002-2003, the CBR added.

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