ISLAMABAD (June 25 2003) : The Central Board of Revenue (CBR) and the ghee mill-owners on Tuesday agreed to amicably sort out issue of the general sales tax (GST) on value addition of ghee/cooking oil in a meeting here.
Both the sides agreed to workout a formula for value addition within a month.
A Pakistan Vanaspati Manufactures Association (PVMA) delegation comprising its Chairman Sheikh Abdul Razaq Basit, Vice Chairman Haji Abdul Razak, Chairman Action Committee Haji Akhtar, executive members Sheikh Ikram and Mian Riaz met Member Sales Tax, Ramzan Bhatti, to convey the concern of its members after an internal meeting on the issue of raids of tax authorities on the mills.
The executive committee of the mill-owners was unanimous that the raids of the tax authorities were a cause of harassment and these should not go unnoticed.
The committee agreed that the issue, which was of serious nature, should be taken up with the concerned tax authorities without any further delay.
On the demand of the committee, the PVMA sought an appointment from the member sales tax for the meeting, which was accorded forthwith.
The delegation of the mill-owners discussed the matter with the member sales tax for more than one-hour.
After the meeting, PVMA Secretary Dr Samdani told Business Recorder that the sales tax adjustment of all ghee units would be reviewed and a final report would be submitted to the CBR within a month.
He said the PVMA would direct all its member units to reconcile their sales tax adjustment in a week so that the matter could be taken with the CBR for a permanent solution.
Samdani said that the mill-owners intended to cooperate with the CBR for stepping up its efforts for increase in revenues, but wanted that the task should be completed in a decent manner.
The PVMA members had shown serious concern over the raids of the tax authorities on their some of the mills for physical verification of record pertaining to value addition, which followed meeting of its executive committee.
Some mill-owners were so perturbed that they demanded from the PVMA to announce closing down of the mills till the end to the CBR action.
However, the PVMA decided to take the matter with the authorities before taking any hard stance of the subject.