ISLAMABAD: The government has agreed to suspend a major documentation measure - SRO.191(I)/2012 - not seeking Computerised National Identity Card numbers or National Tax Numbers of the unregistered buyers, manufacturers, importers and exporters for a period of one month. It also constituted a committee to decide about the future of this SRO, it is reliably learnt.
Sources said the government decision to put on hold Federal Board of Revenue's SRO.191(I)2012 would be a major setback to the ongoing documentation drive of the government. The phase-wise implementation of the documentation measure was finalised in active consultation with the business and trade. The old SRO821(I)/2011 was not rescinded or superseded through SRO.191(I)2012. It was agreed in the past to implement the SRO.191 in a phased manner by the Board in five stages.
Under the said SRO, in sales tax return for the month of March 2012 (to be filed up to 15th April, 2012), at least 60% of the sales shall be to identifiable persons whose STRN/NTN/ CNIC will be provided in the sales tax return. However, the first stage of the SRO.191(I)2012 has been suspended and it would not be applicable for the tax returns (tax period of March) to be filed by April 15, 2012.
The decision to constitute a committee to decide about the future of SRO-191 was taken here on Thursday during a consultation meeting with business community on budget for fiscal year 2012-13. The meeting presided over by the country's economic team headed by Finance Minister Dr Abdul Hafeez Sheikh including Governor, State Bank of Pakistan, Yaseen Anwar, Deputy Chairman Planning Commission Dr Nadeem Ul Haq and Secretary Finance and Planning and attended by the business community of the country constituted committees on various sectors to formulate proposal for the next budget.
The government also agreed to remove disparity in Small and Medium Enterprises (SMEs) and the State Bank of Pakistan (SBP) laws to bring them in conformity with the objective to facilitate the business. The minister reportedly directed the Governor SBP to look into the demand of the business community. The business community also demanded of the government to resolve the issue of trade with Afghanistan by following regional role model of Nepal and India in this regard. The Finance Minister constituted nine committees comprising business community of Pakistan and government officials to take suggestions for the upcoming budget.
Hafeez Sheikh gave an overview of the economy as well about the challenges for domestic and global factors and how the prevailing energy crises have been adversely affecting the foreign direct investment in the country by government like complex and inhered energy crisis and reduction in external financing.
The business community vented out their concerns largely about the tediously slow process of refund by the Federal Board of Revenue (FBR) and energy challenges and more importantly wanted the government to do something about the SRO-191 as condition of taking CNIC number on the invoices has considerably reduced their sale for the last few months.
The business community wanted the suspension of the SRO-191 at least till the budget and requested the government to implement the SRO in consultation with business community and subsequently a committee was constituted to devise future roadmap about the documentation of the economy. The business community also highlighted issues in tariff structure, interest rate and intellectual property rights as well as showed concern about the government policy to pile up the debt of the country on the one hand and crowing out private sector on the other hand.
The meeting also constituted nine committees to finalise proposals and recommendations for the next budget within two weeks. The Secretary Economic Affairs Division would be heading the committee on broadening of tax base with members from business community, Governor State Bank of Pakistan on "Financial Sector Reforms", Deputy Chairmen Planning Commission on "tariff rationalisation", Secretary Commerce Division on "regional trade", Secretary Industries Division on "incentives for investment", Secretary Finance Division on "expenditure management", Secretary Investment Division on "intellectual property rights" and Chairman FBR and members from business community on "refund acceleration of taxes and other FBR related issues".
The Chairman FBR would be heading the committee with members from business community to propose recommendations for "tax relief package for FATA and Balochistan" and Secretary Water and Power, Secretary Petroleum and Deputy Chairmen Planning Commission from government side and members from business community will work on "energy crisis".
The council also concluded to hold an intensive meeting before the announcement of budget, in which delegates from Federation of Pakistan Chamber of Commerce and Industry, Karachi Chambers of Commerce and Industry, Lahore Chambers of Commerce and Industry, Overseas Chambers of Commerce and Industry, All Pakistan Textile Mills Association and Stock Exchange of Pakistan will participate. In the same way, a detailed meeting of Business Person Council will be held after the announcement of budget.
Prominent businessmen from all over the country, members from all the Chambers including President Federation of Pakistan Chamber of Commerce and Industry, Senator Haji Ghulam Ali, Siraj Kasim Teli member of Karachi Chambers of Commerce and Industry, Irfan Qaisar Shaikh from Lahore Chambers of Commerce and Industry, Tariq Saeed from Saarc Chamber and other businessmen attended the meeting.
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