ISLAMABAD: The Senate Standing Committee on Finance, revenue and Economic Affairs Wednesday reviewed the Finance Bill 2019 as well as the clauses proposed by the representatives of different industrial sectors.
The members of the senate also proposed the recommendation for changing in different clauses in Customs Act 1969 and Sales Tax Act 1990 of Finance bill 2019.
Chairman Federal Board of Revenue (FBR) Shabbar Zaidi briefed the Committee which met here with Senator Farooq H Naik in the chair to deliberate on the Finance Bill 2019.
On the occasion representatives from different industries including textiles, Pakistan Cotton looms Association, Ship breakers, Fertilizers, Timber Association, Wood Products and Islamabad Estate Agents Associations expressed their reservation over different clauses of Finance bill and highlighted issues of relevant sectors for proposing amendment in the this regard.
Chairman Counsel All Pakistan Textile Association Zubair Motiwalla while briefing the committee informed that the government would have to pay the Rs 200 billion refunds of textile sector pending for years.
He said that Kids’ fabrics have been imported from the foreign countries and the institution should play their role for stopping the smuggling and under invoicing in the country.
He said “We are already facing 16 different taxes and 17 % of new sales tax was imposed on the industry in Finance bill 2019.
He said that the textile sector was the backbone the country’s economy but now our cotton production has been reduced from 14 million bales to 10 million bales since couple of years.
While responding to a question from textile sectors’ representatives, Chairman FBR Shabber Ziadi accepted the issues of refunds of textiles sector and said that now refunds would connect to the exporters.
He informed that the government is committed to stop smuggling from the country.
In response, the members of committee unanimously directed for maintaining the facility of zero rating for the textiles and other prime industrial sectors.
Meanwhile, the committee also directed FBR for resolving other sectors’ issues including the Ship breakers, Timber and Fertilizers Association and Islamabad Real Estate Association.
The committee also approved the proposal of Senator Mirza Muhammad Afridi for exemption of Federal Excise Duty on the industrial sector of merged Federally Administrated Areas (FATA).
Senator Afridi proposed the committee to extend the tax exemption for merged FATA region for next five years to provide level playing field to the local industrial sector.
The committee approved the recommendation of Syed Shibli Faraz , and proposed to abolish the Riba at earliest and at least 0 % of banking sector should be replaced according to the Islamic banking system.
The committee also approved the proposed recommendation of Senator Kalsoom Parveen on
0 percent adhoc relief may be given to all the federal government employees of grade 17 and above.
While in the meeting Senator Muhammad Talha Mahmood recommendation was also approved by the committee on tax rate on divided income.
Talha Mahmood said that 15 % rate for individual is very high and it should be reduced to 10 % as provided earlier.
Senators Mohsin Aziz,Syed Shibli Faraz , Ayesha Raza Farooq , Dilawar Khan, Muhammad Talha Mahmood, Imam uddin Shouqeen and representatives of the Ministry of Finance and Revenue and Ministry of Commerce attended the meeting.