National Assembly Standing Committee on Finance has strongly recommended to the Federal Board of Revenue (FBR) to maintain differential of income tax between commercial and industrial importers through amendment to the law. According to sources, the committee, once again, unanimously recommended that differential of income tax between commercial and industrial importers may kindly be made as per the following:
Firstly, industrial importer at import stage for raw material falling under chapter 25 to 55 will pay @ 2 percent WHT adjustable. Secondly, no exemption certificate will be issued to industries. Secondly, the commercial importers importing raw material under Chapter 25 to 55 will pay 4 percent withholding (WHT) as full and final. Thirdly, the rest regime of WHT will remain the same which is for finished product.
The representatives of the FPCCI agree to the above proposal. The committee recommended that petition received from Pakistan Steel Melters Association should be considered by FBR for incorporating in the relevant law. Chairman of the committee Qaiser Ahmed Sheikh informed the committee that FBR has furnished a written statement to National Assembly Secretariat, wherein it has been committed to incorporate the proposals in the current budget, but it was not implemented as per commitment. However, secretary finance and chairman FBR assured the committee that the said recommendations would be re-examined for incorporation.
The committee discussed the petition received from the Pakistan Steel Melters Association and recommended that same should be considered by FBR for incorporating it in the current budget. The meeting of the standing committee was also attended by MNAs Rana Shamim Ahmed Khan, Muhammad Pervaiz Malik, Shaza Fatima Khawaja, Syed Mustafa Mehmud, and Jehangir Khan Tareen.