ISLAMABAD (August 26 2003) : On the recommendations of Directorate-General of Intelligence and Investigation, the Central Board of Revenue (CBR) has started sales tax audit of power generation companies, hotels and paper industry situated in Karachi and Lahore.
Sources said here on Monday that the Directorate-General of Intelligence and Investigation (Customs and Excise) detected massive sales tax evasion in three different cases involving Rs 14,097,485 (goods worth Rs 78,539,545) in July, 2003.
This included a hotel of Karachi, a paper company and a power generating company of Lahore.
The CBR has given go-ahead signal to the regional sales tax authorities to conduct audit of units falling within these categories ie power generation companies, hotels and paper units.
D-G Intelligence informed CBR that a power generation company of Lahore had evaded Rs 9,822,000 sales tax (value of goods Rs 54,900,000).
An amount of Rs 1,537,268 as sales tax was involved in a case against a hotel of Karachi, and another case was made against a company engaged in business of 'waste paper' involving Rs 2,678,217.
The CBR wants to know whether other registered units, covered under the categories of hotels, power generation companies and paper industry are properly paying sales tax or not.
Collectors of Sales Tax have been informed by CBR that audit of these categories of taxpayers should be started forthwith to ensure that other registered persons are tax compliant.