CBR Chief asks collectors to accelerate pace of refunds’ payment
By Asad Cheema

ISLAMABAD—The chairman of Central Board of Revenue, M. Abdullah Yusuf, has said that the sales tax was the leading tax among all the federal taxes as well as percentage is concerned and it has, therefore, to play a vital role to meet the overall revenue collection target of Rs. 690 billion.
He was giving his opening remarks at the Quarterly Conference of Collectors of Sales Tax & Federal Excise here on Saturday.
Expressing satisfaction over the growth of 25% in sales tax collection in the first quarter of current financial year as compared to the corresponding period of last year, the Chairman expressed the confidence that the collection could be further enhanced if the system was streamlined and leakages were checked effectively.
For full exploitation of the potential exists in the sales tax sector, he said, “we are required to remove the lacunas and drawbacks in the system.” He observed that STARR & STREM systems had not addressed all the issues confronting with this tax. “We need to further improve both of these systems to enhance sales tax collection,” Yusuf remarked.
Stressing upon the need of total automation of sales tax collection system, the Chairman asked the ST Collectors to ensure that the reliable data like the amount brought forward, its age, pending/outstanding amount etc. was available on the net. The new e-filing system would greatly help to achieve the desired results in this regard, he felt.
Abdullah Yusuf asked the collectors to accelerate the pace of refunds payment and try to over come this issue as early as possible. “We seem to be reacting the situation rather than pre-empting the situation”, he said and added, “we need to close this issue once for all” whatever was payable, pay it with necessary verification, no refund claim should be remained pending, the chairman advised the collectors. In this regard, he also referred zero-rating off five major industrial sectors. In future, “we are required to be far more transparent and effective,” he stressed.
During the Conference, the collectors apprised the participants about the performance of their collectorates in the first quarter of CFY, future strategy for achieving the revenue targets, progress on collection of 3% retail tax, adjustment notes processing and reconciliation of refunds paid on stocks.
The collectors also apprised the Conference about the pending adjudication cases and appeals and the total amount involved in them in their respective collectorates. The Chairman advised them to clear the pendency within the given time frame.