Seeking an end to the never ending dispute on provincial sales tax mechanism and collection on transportation of petroleum products, Ashfaq Tola, President of Tola Associates has submitted a dispute resolution report to the Prime Minister's office.

Recall that sales tax on inter city transportation services is charged under different revenues authorities at varying rates from 13 percent to 16 percent. The report has extensively compared two different revenue collection approaches of fixed and existing sales tax rates.

The author has recommended an option of a fixed sales tax between 5 paisas to 15 paisas to be incorporated into the price of petroleum products, on account of freight services. The report further recommends Ogra to devise mechanism for depositing such sales tax. Furthermore, OMCs have been recommended to be made responsible for charging, collecting and depositing sales tax on the basis of volume supplied.

Copyright Business Recorder, 2017