Sales tax arrears recovery: body set up to speed up process


The Central Board of Revenue (CBR) has started recovery of sales tax arrears stuck up due to court cases, particularly from the adjudication proceedings completed against the taxpayers.
Official sources told Business Recorder on Saturday that the CBR has constituted an ‘Arrears Recovery Committee’ to monitor and expedite recovery of sales tax and federal excise duty (FED) arrears.
The committee will be headed by Ghulam Ahmed, Collector, Audit, Sales Tax House, Karachi, with Iftikhar Qutab, Collector, Sales Tax and Federal Excise, Large Taxpayer Unit (LTU), Karachi, and Mukkaram Jah, Additional Collector, Sales Tax and Federal Excise, Lahore, as members.
The committee will work with the following Terms of References: First, the committee will co-ordinate with the collectors for expeditious finalisation of cases pending in courts, tribunals, alternative disputes resolution (ARD) mechanism.
Second, it will co-ordinate with all Collectorates for immediate vacation of existing stays and recovery in cases where stay has vacated. Third, it would follow up expeditious recovery of arrears, which are recoverable as such.
Fourth, the committee will submit consolidated progress report to CBR Member Sales Tax and Federal Excise on fortnightly basis and ensure that recoverable arrears are realised by the end of March 2007 and cases pending at different judicial fora are finalised by the end of May 2007.
Officials said that total amount of arrears comes to billions of rupees. In most cases, recovery is due in adjudication proceedings. The Board has estimated to recover huge amount through this exercise.

Copyright Business Recorder, 2006