Dated: 19th April, 2016: A meeting of the Standing Committee on Finance, Revenue, Economic Affairs, Statistics and Privatization of the National Assembly was held today, the 19th April, 2016, at 02:00 p.m, in Committee Room No. 7, Parliament House, Islamabad, under the Chairmanship of Mr. Qaiser Ahmad Sheikh, MNA, on the following agenda:

Agenda No. 1

i).            To consider the “Benami Transactions (Prohibition) Bill, 2016.”

Agenda No. 2

i).          To discuss the discriminatory SRO-1125/2011 & its Discrepancies (Petition filed by Pakistan Yarn Merchants Association)

ii).         Exemption on Sales Tax on Raw Hides and Skins / Eligibility of SRO 897(1)/2013 from 12th June, 2013 instead of 4th October, 2013 for removal of Show Cause Notice. (Petition filed by Pakistan Tanners Association).

iii).       To discuss the Survival of Pakistan’s Steel Industry. (Petition filed by Pakistan Steel Melters Association).

iv).        To discuss the issues facing APTMA (All Pakistan Textile Mills Association) like imposition of various surcharges, levies / taxes on exports, energy supply mismanagement and structural imbalances.

v).         Federal Encroachments on Provincial Taxes/Income Tax on rental income. (Petition filed by Zakria Usman, Former President FPCCI, Karachi).

vi).        Hardship to Local Manufacturers of Esters of Acetic Acid due to Custom Tariff Anomaly.

vii).      To consider the recommendations received from Karachi Chamber of Commerce & Industries (KCCI) and Federation of Pakistan Chambers of Commerce and Industries (FPCCI) for onward submission to Ministry of Finance.

3.             The Committee Members were briefed by the Member (Inland Revenue & Policy),FBR regarding Benami Transactions (Prohibition) Bill, 2016. He said that Benami property was causing grave concern to the tax authorities, past practice and experience shown that Benami transaction have often being resorted for further illegal or questionable objectives. He added that this bill was being introduced to deal with the problem of tax evasion and black money especially in the real estate sector. He said that subject legislation will provide strengthening the law. The Committee decided that further discussion on the said Bill would be held in the next meeting.

4.             While considering the matter with regard to discriminatory SRO-1125/2011 & its Discrepancies. The Committee recommended that differential of withholding income tax between commercial and industrial exporter should be reduced.

5.             While considering the petition regarding Exemption on Sales Tax on Raw Hides and Skins / Eligibility of SRO 897(1)/2013 from 12th June, 2013 instead of 4th October, 2013 for removal of Show Cause Notice. The Committee recommended the view point of Pakistan Tanners Association (PTA) and directed the FBR to resolve the matter of PTA.

6.             The Committee considered the petition regarding Survival of Pakistan’s Steel Industry. The Committee was informed by the Chairman, FBR that FBR has already given relief package to Pakistan’s Steel Industry. Meanwhile, a meeting was convened in FBR, wherein it was decided that the matter should be forwarded to Ministry of Commerce, as the same relates with them. The Committee recommended to the Ministry of Commerce for an early response in this regard.

7.              The Committee considered the petition with regard to the Federal Encroachments on Provincial Taxes/Income Tax on rental income. The Committee Members were of the view that already existing system for collection of income tax should be continued on rental income.

8.             While considering the matter regarding Hardships facing to Local Manufacturers of Esters of Acetic Acid due to Custom Tariff Anomaly. The Chairman, FBR informed the Committee that said matter has already been taken-up by the FBR. 

9.             The Committee also considered the recommendations received from Karachi Chamber of Commerce & Industries (KCCI) and Federation of Pakistan Chambers of Commerce and Industries (FPCCI). The Committee recommended the following:

i.             Zero rating should be levied on export sector.

ii.            Zero percent duty should be imposed on plants and machinery, which is not manufactured in country. 

iii.           Sales tax ratio should be gradually reduced.

iv.           New industry in the country should be provided tax exemption.

10.          The Committee considered the taxes issues pertaining to Pakistan Dairy Association and recommended the FBR to resolve the matter with consultation of Pakistan Dairy Association (PDA).

11.          Meeting was attended by Rana Shamim Ahmed Khan, Sheikh Fayyaz-ud-Din, Mian Abdul Mannan, Ms. Shaza Fatima Khawaja, Syed Naveed Qamar, Dr. Nafisa Shah, Syed Mustafa Mehmud, Mr. Jehangir Khan Tareen, Mr. Asad Umar, MNAs and besides senior officers from Ministry of Finance, Revenue, Economic Affairs, Statistics & Privatization.