LAHORE (October 22 2002) : Riaz Ahmed Malik, Chairman Central Board of Revenue (CBR), has said that revenue target of Rs 460 billion fixed for financial year 2002-03 is likely to be achieved, as a result of recent steps taken by the board.
While talking to newsmen after inaugurating the 13th Post Budget (2002-03) Workshop here on Monday Riaz said that keeping in view the collection made in the first quarter of current fiscal, we are optimistic regarding achievement of the target set for the whole year.
When his attention was drawn towards charging of general sales tax (GST) on medicines, he said that GST might be charged on medicines in some cases. However, soon after the government announcement regarding withdrawal of GST, the chemists have stopped charging this levy from the consumers. Pakistan Pharmaceutical Manufacturers Association (PPMA) and Pharmaceutical Bureau of pharmaceutical producers have assured the government that they would not only settle the issue regarding levy of GST on stock available with the chemists, but also remove the stickers/ stamps relating to GST from the medicines' packs, he added.
The Ministry of Health is closely monitoring the situation to ensure implementation of government decision regarding waiver of GST on medicines, he maintained.
“CBR officials have carried out a survey in more than 37 cities across the country to receive first hand information regarding charging GST on medicines after its withdrawal. The results of survey were very encouraging because 90-95 percent people had no complaints pertaining to charging of GST'', he informed.
Earlier, addressing the workshop, the Chairman CBR advised the tax collectors to be polite with the assessees instead of dealing with them with rigid attitude. He urged the tax officials to perform their duties with honesty and efficiency so as to enable the CBR to meet its revenue targets.
Earlier, Director General Receipts of the Department of the Auditor General, Muzammil Tayyab Sultan in his welcome address said that the Revenue Receipts Audit Wing of the Department of the Auditor General is responsible for audit of direct taxes, indirect taxes and surcharges of federal government and taxes generated by all the four provincial governments.
Their present volume is over Rs 552 billion. For this gigantic task, the Wing has only 299 employees in all its cadres. Despite resources constraint, audit has made valuable contribution towards raising government's revenue, he added. Its three field audit offices in Lahore and Karachi unearthed financial irregularities of Rs 60.142 billion during the year 2001-02 and produced six regularity reports and 13 study reports for the legislatures. With the co-operation of tax collecting agencies and hard work of auditors, cash recoveries of Rs 3.295 million were made at the instance of audit, he informed.
The Auditor General's Department has also attempted upon the subject of ascertainment and certification of net proceeds of divisible taxes in fulfillment of its constitutional obligation under the Article 260. All this was achieved at a total cost of Rs 40.8 million on Audit. Just on the basis of cash recoveries made at the instance of Audit, the cost-benefit ratio works out to be 1:81 that is an earning of Rs 81 at the expense of Rupee one, he added.