Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the C. B. R., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (ST-L&P), addressed to Major Iftikhar Hussain, Directorate of General Procurement
(Army), 107-Adamjee Road, Rawalpindi & Copy to the all Collectors of Customs, Sales Tax &
Central Excise.]
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C. NO. 1(3)SECY(PR)/2001 DATED 22 ND AUGUST, 2001
SUBJECT:-
REPORT OF THE TASK FORCE ON REFORM OF TAX
ADMINISTRATION
As you are aware that Central Board of revenue has started reviewing the
recommendations of the Task Force on Tax Administration headed by Syed Shahid
Hussain. The Task Force has recommended measures to improve the ability of Pakistan‘s
tax machinery to collect taxes efficiently and without undue coercion of taxpayers. The
report suggests autonomy of Central Board of Revenue, overhauling of Income Tax,
reform of recruitment, training, compensation and human resource management. The
report has also recommended re-engineering of business processes of customs, sales tax
and income tax with a view to minimize contact between taxpayers and tax collectors
through automation. The task Force has also reviewed the causes of corruption and
recommended measures to eliminate the same. Major recommendations regarding
Income Tax, Sales Tax and Customs are as under:-
Income Tax:
The Task Force has recommended overhauling of the existing income tax system
towards functional specialization. The Force has proposed that under each RCIT there
should be 06 divisions headed by CITs. These are Management Information System,
Operations and Audit, Legal and Prosecution, Survey and Research, Customer Service,
Enforcement and Collection, and Inspection and Internal Audit. The report recommended
each Division would have a role in disposal of cases in line with its specialized functions.
However, the fundamental responsibility of declaring and assessing tax amount will be
that of the taxpayers. The selection of cases for audit will be based on objective criterions
supported by survey and research. The report emphasizes minimum, interaction the
taxpayers and tax collectors for which all processes will have to be reengineered and
automated.
Sales Tax:
The Force has recommended to simplify the sales tax regime for facilitating the
taxpayers. It has suggested that the task of audit review may be streamlined and
establishment of Internal Audit Division at each Collectorate. The Task Force has also
recommended the creation of taxpayer assistance unit to deal with the complaints of
taxpayers and issuance of certain notices and orders.