On the recommendation of the committee for the implementation of the recommendations of the steering committee for the promotion of Islamic Banking, Finance Minister Ishaq Dar has constituted a sub-committee on taxation. According to a notification issued by the Finance Division, the chairman Federal Board of Revenue would be chairman of the sub-committee on taxation.
Saeed Ahmad, Deputy Governor State Bank of Pakistan (SBP) would be convenor of the sub-committee, while members of the panel include: Ebrahim Sidat, accounting expert; President, the Institute of Chartered Accountants of Pakistan; one nominee of Finance Division; Junaid Ahmed, President, Dubai Islamic Bank Pakistan Limited; Mufti Hassan Kaleem, shariah scholar; one nominee of Chairman SECP; Ashfaq Yousaf Tola, fellow chartered/ accountant; and heads of Revenue authorities of all provinces.
Terms of reference (TORs) of the sub-committee on taxation included: firstly to advise FBR to provide tax neutrality for Islamic financial institutions and their customers; secondly to review tax related matters of Islamic banking subsidiaries of conventional banks and rationalise to make it a competitive business model; thirdly, TORs included to provide support and assistance to other sub-committees as and when required. The committee may co-opt other members as and when necessary, the notification added.