SALES TAX, A BLACK LAW

SALES TAX, A BLACK LAW <!--[if gte mso 10]> SALES TAX, A BLACK LAW By Mr. Ameeruddin M. Shaikh, Advocate, High Court, Nawabshah Unlike Income Tax Law which requires filing of return once in a year, the sales tax law requires it 12 times in the same period of time. In the Income Tax law which is as old as Pakistan itself, delay is condoned in filing return on genuine and legitimate grounds but in sales tax law there is no excuse, even on very genuine grounds like death, grave incidence or accident. The penalty under the former law for delay without reasonable excuse for non-filing or late filing of return is 1/10th or 1% of tax payable for each day of default subject to a minimum of Rs.500 whereas in the later law it is Rs.5000 for each default. The additional tax for delay in payment of income-tax is nominal whereas under the sales tax law it is very harsh, coercive and excessive and sometimes the additional sales tax become 100 times more than the principal amount in addition to penalties. Recovery of sales tax, irrespective of its being disputed due to litigation at appellate forums is very harsh, coercive regenerative like embargo, confiscation of properties and even arrest alongwith insult and dishonour of the taxpayer. Sales tax authorities possess absolute and arbitrary powers and there is little check and balance so far as the administration of Sales tax law is concerned. Central Board of Revenue and the Ministry of Finance should look into the matter and reform the sales tax laws and remove the required deficiencies as it is a consumer tax and it's adverse effects fall on the poor public. LETTER FROM ABDUL MALIK KHAN, INCOME TAX ADVISER, CHARSADDA TO SECRETARY (ASSESSMENT) CENTRAL BOARD OF REVENUE (Clarification regarding self-assessment) [5th March, 2003] From: Abdul Malik Khan, Income Tax Advisor, Quaid Abad Colony No.2, Milian Road, Charsadda. To Secretary (Assessment), Central Board of Revenue, Islamabad. Dear Sir, CLARIFICATION REGARDING SELF-ASSESSMENT Your kind attention is invited to Circular Letter C. No. 7(7)S. Asstt/95-pt, dated September, 21, 1995. With the request to clarify the following:--‑ Para. 1 (iii) of the said circular letter reads as under: "Where a person has income from property and business the taxpayer has to increase his income from business by 20%" Whether this condition/clarification is also applicable in the subsequent years or it was only for the year 1995-96? An early clarification will be highly appreciated.