ISLAMABAD - Senate Standing Committee on Finance and Revenue on Friday once again rejected many taxation proposals of Supplementary Finance Bill 2021 including tax imposition on laptops/computers.
The committee gave recommendations for the inclusion of insurance guarantee, bank guarantee and cheque for substances registered as drugs and medicaments under the drug Act 1976 and further recommended that the release of guarantee may also be time bound. The committee also recommended bank guarantee on the oil and steel industry. The committee also sought details from the Federal Board of Revenue on the cases pending with regards to release of guarantees. The FBR assured the committee that the report will be submitted within a fortnight. The chairman Federal Board of Revenue reiterated on the IMF restrictions on the speedy provision of the subsidy and refunding of the guarantees. “The refund system of bank guarantees has been accelerated by 98.5 pc this year,” stated Chairman FBR while assuring that the apprehensions will prove infructuous. He said that an industry standing on Rs700 billion without a refund system is not comprehended; the refund system is a worldwide practice. The chairman FBR has invited the Senate Committee to take a presentation on the upgraded refund system mechanized by the FBR and clear their apprehensions. The Chairman Committee acknowledged the invitation stating it the need of the day and directed to schedule a meeting on the subject.
The Senate Standing Committee on Finance Revenue and Economic Affairs met for the 3rd Consecutive day under the chairmanship of Senator Muhammad Talha Mahmood here at the Parliament House on Friday. Senator Farooq Hamid Naek, while expressing reservations on the “No tax Exemption-only Targeted Subsidy Policy”, said that only time will tell the truth of the consequences of such policies. “Tax imposed on the sewing machines of the “household type” is a clear example of unjust to the class of society who cannot afford branded clothing and boutiques wardrobes, expressed Senator Farooq Hamid Naek. The import of sewing machine is being misused by the industrialist, stated chairman FBR. The committee unanimously recommended change in the word, from “household type” to “industrial type”. The proposed amendment on the custom duties on personal wearing apparel and Bona Fide Baggage imported by overseas Pakistanis and tourist was also unanimously rejected by the committee. The chairman FBR acknowledged the recommendation on the same and assured to revisit the proposition. The committee also omitted tax on solar panel on the analogy that it is a discouragement on the use of innovative natural resources for development of the country. Senator Faisal Subzwari also held serious reservations on tax imposition on laptop/ computers stating that it is against the idea of the Prime Minister for Digitalized Pakistan.
The public petition by Muhammad Fayyaz Qureshi, Vice Chairman Pakistan Gems Jewelry Traders and Exporters Association, was referred to the Federal Board of Revenue. The chairman FBR invited all the stakeholders including, exporters and importers for a public hearing and obtain a single solution, in consensus, on the matter of 17pc sales tax on import and supply of gold silver in unworked condition and articles of jewelry. The committee also proposed recommendation that a meeting should be held with the Senate committee on Commerce, the Finance Committee, The FBR and all the stakeholders will deliberate on the culture of smuggled gold in the country.
The chairman FBR assured that the FBR is working on levied tax in the agriculture sectors. The chairman FBR stated that he has affirmed with the finance minister on the subject keeping the modesty of the country intact. “All differences in sales tax should be eliminated in the next five months”, Chairman FBR stated. The committee unanimously agreed on the proposition of fully documenting the matchbox industry, the committee proposed recommendations to increase the fixed tax on match stick material from Rs 90 to Rs 110 per kg. The chairman FBR informed the committee that machinery is being imported more than raw material, in export processing zones. The committee approved the imposition of sales tax on imported machinery of export processing zones. The chairman FBR stated that the main problem in erstwhile FATA is the post data check. Erstwhile FATA has Rs 50 billion in taxes, said Senator Saleem Mandviwalla.
The FATA industries have given fake checks, he added. The committee believed that the import of erstwhile FATA should be stopped till the full tax payment. The public petition by Jahanzaib Nadeem Metro Shoes was also taken up by the committee. The petitioner submitted that a frivolous FIR and illegal harassment at personal level has been faced by him and the company by the FBR authorities in demand of Rs 500 Million deposit whereas he said that Rs 700 million is the total asset of the company. The matter was referred to the FBR Member Operations with the directions to probe into the matter and obtain legality on the same and submit report. The matter was deferred up till Monday to be taken up by the committee.