ISLAMABAD (June 21 2003) : To streamline banks' tax collection reporting, the Central Board of Revenue (CBR) and State Bank of Pakistan (SBP) have hammered out a new methodology for reconciliation of revenue receipts, from July 1, 2003.
The new system would enable the SBP and National Bank of Pakistan (NBP) to accurately report tax collection on regular basis eliminating any variation in tax collection reported by CBR and SBP.
In this regard, the tax agency and SBP/NBP held a number of meetings to devise mechanism for error-free reporting of tax collection.
SBP has informed CBR that data could not be provided on CBR's reconciliation format, while tax authorities insisted that format provided to SBP was already in practice at the SBP branches as well as Collectorates, and Income Tax Data Processing Centres (DPCs).
A delegation comprising tax managers and officials from CBR Directorate of Research and Statistics (DRS) would shortly visit Karachi to convene meetings with SBP and National Bank of Pakistan (NBP) on this particular issue.
Referring to a recent meeting held on June 9, 2003, among the troika of CBR, SBP and NBP, sources said, the SBP-devised tax reconciliation format was not in line with CBR requirements.
Therefore, this format might be used by the SBP for its internal purposes.
However, the CBR will provide new format to SBP for reconciliation of direct taxes and indirect taxes.
The CBR has informed SBP and NBP that the tax collection receipts both at micro and macro levels are being maintained and regularly submitted by the NBP to the SBP.
The only efforts required by the SBP headquarters in Karachi is to issue instructions to its branches for submission of reconciled statement to the SBP.
The SBP should issue instructions to relevant branches so that the new system is implemented from July 1, 2003, CBR added.