ISLAMABAD: The Federal Board of Revenue (FBR) Thursday said the revenue target of Rs 4,963 billion for the current fiscal year is achievable without imposing taxes and taking harsh measures.
Member Inland Revenue (Policy) Dr Hamid Attique while briefing the National Assembly's Standing Committee on Finance stated that revenue collection target would be achieved on account of growth in Gross Domestic Product (GDP) and inflation. The committee was assured that revenue collection target is achievable without imposing taxes and taking harsh measures The Committee regarding the expected collection of revenues towards achieving the targets set by the Government in the Budget 2020-21.
FBR Member IR Operations informed the committee that from 2014 onwards income tax refund claims stood at Rs 89 billion and sales tax refunds of Rs 112 billion is payable to the refund claimants.
The meeting of the committee was held under the chairmanship of Faiz Ullah for the second consecutive day was informed that last fiscal year around 32 percent increase in sale tax collection was recorded and this year again around 30 percent increase in sale tax collection is expected to be achieved by use of technology. The meeting was also informed that withdrawal f zero rating in the last fiscal year mobilized Rs 188 billion whereas refund payment was Rs 105 billion. The official of FBR said that faster system has contributed to improvement of refund payments.
The Committee offered Fateha on sad demises of the officers and officials of FBR during current pandemic of COVID-19 and admired the role of Shuhada. The Committee further recommended that special package should be provided to the families of 31, Shuhada of FBR, died during service, recently. The Committee directed the Chairman, FBR to provide incentives to FBR employees those have worked hard during Budget 2020-21. The committee was also briefed on the refunds issued by the FBR. Member (IR) shared the details of the refunds issued to exporters during current fiscal year. The Committee also directed to furnish the details of pending refunds before 2014.
Sohail Rajput, Additional Secretary, Ministry of Finance informed the Committee about the reason of delay regarding formulation of Zarai Taraqiati Bank Limited (ZTBL) Board and stated that the proposed nominations were sent to State Bank of Pakistan (SBP) for necessary actions including security clearance for last more than two months and are still awaited. Chairman of the committee deplored that cabinet was meeting every week but ministry of finance has not been taking these issues to the cabinet with members stating that there was more than 40 percent reduction in loans of ZTBL and at this point in time immediate measures are required for agriculture sector. The members of the committee said that ZTBL was being run on ad-hoc basis and ministry of finance polices have been causing harm to the bank.
The Committee expressed its displeasure on the procedural delays in this regard and directed the Special Secretary to intervene the matter and summary for the formulation of said Board may be submitted to the Prime Minister at the earliest for smooth and effective working of the Bank. Special Secretary Finance stated that the country's growth heavily depends on agriculture sector and ministry of effort would make every effort to make sure that ZTBL board is constituted at eeliest. However, chairman of the committee inquired that why the ZTBL board was not formed during the last seven years upon which ministry of finance officials gave various reasons and explanation causing delay.
Dr. Sania Nishtar, Special Assistant to the Prime Minister on Poverty Alleviation and Social Protection briefed the Committee about the Ehsaas Program launched by the Government for distribution of funds to vulnerable families in Pakistan, during current pandemic of COVID-19. She expressed the procedure of Ehsaas Emergency Cash Project, wherein, 16.9 million families would be catered by providing Rs.12000/- per family (one time). She also shared the international practices with regard to cash transfer program. She said that unconditional cash transfer program have much lower cost per beneficiary than in kind of food distribution. She explained the salient features of Ehsaas infrastructure leveraged for emergency cash. The Committee highly appreciated and admired the role of Dr. Sania Nishtar on her devotion and effective working for Pakistan and assured her its full cooperation in this regard.
The Committee deferred the briefing by the Deputy Chairman, Planning Commission regarding sectoral impact of post-corona and Government strategies in this respect due to short of time. Managing Director, Utility Stores Corporation (USC) Umar Lodhi was also present in the meeting.
The Committee Members have expressed their concern about the functioning of USC, however, the Committee unanimously decided that an exclusive meeting would be called shortly to discuss the subsidy given by the USC to the common people and Rs.50billion package allocated to USC by the government. Some members said that when the sugar was being sold in the market at Rs 70 per kg, USC procured sugar at Rs 79 per kg and stated that USC subsided commodities were being sold at different shops of Faisalabad.
Umar Lodhi said that a large number of ghost employees were nabbed and added that computerization of the USC was the only way to fix the functioning of USC. He said that USC got only Rs 10 billion from the announced money during the last fiscal year. The meeting was informed that out of 4000 USC, none was computerized with high ups of USC claimed that by December USC would achieve breakeven level as payables have been reduced significantly during the one year.
Copyright Business Recorder, 2020
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