PESHAWAR, March 20: Pakistan and China have signed an agreement for countering illegal movement of goods, says Central Board of Revenue Chairman Abdullah Yusuf here on Tuesday.
He informed that a team of Chinese officials was visiting Pakistan next month to work out modalities and putting in place a mechanism to achieve the targets set under the bilateral agreements.
Mr Yusuf was responding to a point raised during a meeting with the members of the Sarhad Chamber of Commerce and Industry (SCCI) held here on Tuesday.
SCCI President Liaqat Ahmad Khan presided over the meeting and apprised the CBR chairman about the problems relating to taxation machinery.
The CBR chief further said that under the agreement a computerised system was being developed that would give first-hand information about every consignment leaving for either side within no time.
He said the system to be installed at Sust dry port and Karachi sea port would enable the authorities to know volume and even specification of every consignment.
“This system would help countering the menace of ‘under-invoicing’ that has been hitting the local industry besides depriving the national exchequer in shape of fake refunds,” he maintained.
Mr Yusuf said that the fiscal policies of the incumbent government were focused on attaining high growth for which overhauling of the tax machinery was essential.
He explained that the CBR was being restructured to improve the services to the taxpayers and create environment of voluntary compliance.
“Enforcement of universal self assessment scheme and establishment of Regional Tax Offices (RTOs) are some of the steps taken under the reform agenda. But, still lot has to be done because we want a system where the taxpayers should not require visiting tax offices,” he maintained.
He was of the view that private sector had to play a vital role boosting the tax-to-GDP ratio of the country which was lowest in the region.
Later talking to reporters, Mr Yusuf informed that the collection of agriculture income tax on behalf of four provinces was also a step towards increasing the tax-to-GDP ratio.
The federal government was examining a proposal to empower the CBR to collect agricultural income tax on behalf of the four provinces on the basis of income from the sale of agricultural produce by next financial year 2007-08.
The CBR chairman said that the agriculture income tax had huge potential that needed to be explored appropriately for economic growth of the country. “The agriculture sector has a 22 per cent share in GDP but there it has no contribution in the taxes,” he added.
