KARACHI: The government is planning to segregate Sales Tax from the Inland Revenue forming a new group, sources said.
The decision in this regard is expected in the coming week. It was in the agenda of last week’s cabinet division meeting, but the issue was not taken up. However, the issue tops the agenda of next week’s meeting.
Sales tax contributes around 45 percent of the total FBR revenue. Sales tax is a troubled sector and involved largest evasion due to weak enforcement. An official said the move was aimed at streamlining indirect taxes.
The official said the exercise would take some time before the separate group is established. Sources said there could be appointments and trainings in this regard.
The Economic Coordination Committee (ECC) of the newly-formed federal cabinet met here on Wednesday, but Finance Minister Asad Umar was unable to take decisions on any of the five issues tabled for discussion because the issue of circular debt and its crippling impact on the energy sector consumed most of the time allocated.