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  • Aug 31st, 2004
  • Comments Off on IMF apprehensions on tax exemptions removed
The Central Board of Revenue (CBR) has removed apprehensions of the International Monetary Fund (IMF) that the SROs issued by the anomaly committee has not given any fresh exemptions of customs duty and sales tax to various sectors.

A senior government official interacting with the fund mission told Business Recorder here on Monday that the IMF has raised the query about notifications of changes in duty structure on various items/apparatus issued by the anomaly committee.

The IMF mission asked tax authorities to explain whether the SROs issued by the anomaly committee has given any kind of new tax relief to the industrial sector of Pakistan or not.

He said: "The issue has been settled between the CBR and IMF as the CBR has conveyed to the fund mission that these were not new exemptions.

These were the anomalies in the budget document (2004-05), which have been rectified, and have nothing to do with new exemptions."

The IMF mission met the CBR line members including Member, Sales Tax and Member, Customs during their visit to the CBR headquarters.

Tax officials informed the IMF about efforts made by the tax machinery, which helped in achieving revenue target in fiscal 2003-04.

On the sales tax side, the CBR has informed the IMF that a number of initiatives were taken in the last fiscal for broadening of tax base, which ultimately increased the revenue collection.

The IMF has expressed satisfaction over the CBR's last fiscal performance and pace of revenue collection in 2004-05, officials said.

The IMF technical team comprising Taimur Baig, Van Rooden and Schimmelpfennig is holding meetings with CBR chairman Abdullah Yusuf to carry out an objective 9th review under the Poverty Reduction Growth Facility.

Copyright Business Recorder, 2004


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