ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs 647 million under the head of point-of-sales (POS) services fee from general public since July 2023 and utilized Rs 309 million for FBR’s employee welfare.
During the meeting of Senate Standing Committee on Finance held here on Wednesday, Senator Mohsin Aziz initiated a query regarding the amount collected by the FBR up to July 2024 through a Rs 1 fee on each invoice related to point-of-sale (POS) services, along with details on its utilization.
The FBR informed the committee that the former Finance Minister approved the use of this revenue for funding the monthly price scheme for customers at integrated Tier-I retailers, enhancing the capacity of POS-related technical and logistical teams, media campaigns, and employee welfare for the IRS. The total POS fee collected amounted to Rs 647,319,302, with Rs 309,337,000 utilized primarily for employee welfare.
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The committee also examined the legal basis for provinces imposing taxes on exports. It was clarified that provinces have the constitutional authority to levy an Infrastructure Development Cess on the transportation of goods for imports and exports. However, to promote exports and facilitate the flow of foreign exchange, such duties and taxes are generally not imposed on exports. The Khyber Pakhtunkhwa province, which shares a border with Afghanistan and has substantial export activities, may see a negative impact on exports due to a proposed 2% Infrastructure Development Cess. It was noted that Pakistan Customs is not currently collecting this cess; rather, banks are handling it on behalf of the provincial government. It was decided that MOF will constitute a committee to finalise a recommendation for the committee to resolve this issue.
Agenda items included discussions related to the Federal Board of Revenue (FBR). The matter raised by Senator Manzoor Ahmad was deferred up till his satisfaction due to his absence. The matter pertained to concerns about a 10% levy on transport and business operations between Pakistan and Iran. It was reported that when Pakistani vehicles transporting cargo from Quetta to Iran reach their destination, Iranian authorities deduct 10% of the fare as an additional fine. In contrast, Iranian vehicles transporting goods from Quetta to Iran incur no such charges. This practice disregards the principle of reciprocity and results in unequal treatment for Pakistani vehicles. The FBR informed the committee that this issue has been communicated to the Ministry of Communications, which is the designated authority for implementing the Bilateral Road Transportation of Goods Agreement. It was recommended that the Ministry of Communications, in coordination with the Ministry of Foreign Affairs, address this matter with Iranian authorities. The discussion was deferred upon request of Senator Munzoor Ahmad.
Copyright Business Recorder, 2024
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