20000205

Industry-wise tax on four major sectors proposed

IKRAMUL HAQ

ISLAMABAD: Industry-wise tax on four major sectors is proposed to be levied from next year.

Finance Minister Shaukat Aziz told pressmen on Friday that preparations are afoot to bring textile, sugar, cement and beverages under uniform income tax assessment.

Experts are studying the issue, as the prices of the common product from the raw materials should be the same depending on very minor variations. Large variations in cost of production are not expected in the manufacture of the same product.

According to him, analysts are working out the rates during the current fiscal year. They are also working on the GP rates. Negotiations are going on with the industry, he added.

He stressed that the income tax officers so far worked on a geographical basis in which different individuals, producers of goods and companies were assessed. Now one of two industry-specific commissionerates will be set up for the whole country.

Asked if the government would abolish wealth tax, the minister did not reply categorically but said that the avowed object of the government is that there should be three taxes namely customs, sales tax and income tax.

Asked about downsizing in the CBR, the minister said that purging of corrupt in the CBR is going on.

Answering another question, the minister said the revenue collection in the first six months has increased by 20 percent but he did not give the figure saying that shortly he would present a review of economy in the last six months.