The Central Board of Revenue (CBR) has decided to set up camp offices in all cities to encourage retail sector to pay taxes and guide the retailers on taxation issues, including benefits of registration with sales tax department. This is for the first time that 'CBR camp offices' comprising both sales tax and income tax officials would be established across the country to exclusively deal with the retailers.
The CBR has also decided to assign targets to all collectors of sales tax for bringing unregistered retailers into the tax net and increasing revenue collection from the retail sector in 2005-06.
Sources told Business Recorder on Tuesday that collection of 3 percent retail tax from retailers of five sectors which has been zero-rated in budget (2005-06) poses a major challenge to the collectors of sales tax. This goal can only be achieved if the retailers are told about the benefits of registration and pay retail tax. Three percent retail tax includes two percent sales tax and one percent income tax, which is their final liability.
In this regard, the CBR has decided to assign separate targets for collection of retail tax to be assigned to each collectorate of sales tax on the basis of population of retailers.
Camp offices would include one sales tax officer and one income tax officer for the guidance of the retailers in all major towns, sources added.
They said that tax base can only be broaden by identification and subsequent registration of the potential taxpayers.
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