41st meeting of the Standing Committees on Finance, Revenue, Economic Affairs, Statistics and Privatization of the National Assembly was held today i.e 5th October, 2016 in Committee Room No. 7, under the Chairmanship of Mr. Qaiser Ahmad Sheikh, MNA, on the following agenda:-

i. Confirmation of minutes of last meeting held on 08-09-2016.
ii. Consideration of “The Tax Laws (Amendment) Bill, 2016 (Ord. No. V of 2016) (Govt. Bill)
iii. Consideration of “ The Limited Liability Partnership Bill, 2016” (Govt. Bill)
iv. Consideration of “The Income Tax (Amendment) Bill, 2016” (Ordinance No. XLIX of 2001) (Govt. Bill).
v. Consideration of “The General Statistics (Reorganization) (Amendment) Bill, 2016” (Moved by Mr. Aftab Ahmad Khan Sherpao, MNA)
vi. Discussion on the proposal regarding differential of Income Tax between Commercial Importers and Industrial Importers.
vii. Briefing by the Chairman, FBR regarding Tax imposition and its implementations on real estate transactions in the light of amendments made in the Finance Bill, 2016-17.
viii. Discussion on replies by the FBR in last meeting of the Committee regarding National Revenue Collection (NRC).
ix.  Briefing by the Governor, State Bank of Pakistan (SBP), Chairman, Federal Board of Revenue (FBR) and Chairman, Securities Exchange Commission of Pakistan (SECP) on Panama Papers issue and actions taken in this regard. 

2. The Committee approved the minutes of the last meeting held on 08-09-2016.  The Committee considered the “The Tax Laws (Amendment) Bill, 2016 (Ord. No. V of 2016)”. Chairman, FBR briefed the Committee about the salient features of the said Bill. He said that in order to provide parity between conventional TFCs and shariah compliant companies the Bill has proposed to grant similar tax concessions and incentives to the shariah compliant companies. He added that The Tax Laws (Amendment) Bill, 2016 (Ord. No. V of 2016) sub-section (4) was inserted in section 236C by providing exemption from the application of this section to the dependents of Shaheeds belonging to Pakistan Armed Forces and those who die, while in the service of the Pakistan Armed Forces or Federal and provincial governments. He further stated as the language of this sub-section was misinterpreted and intended scope was being enlarged. Therefore, it is proposed to redraft this sub-section as to clearly manifest the intended scope of this provision. After detailed discussion the Committee recommended that “The Tax Laws (Amendment) Bill, 2016 (Ord. No. V of 2016)” may be passed by the National Assembly.

3. The Committee considered the “The Limited Liability Partnership Bill, 2016” and recommended that said Bill may be passed by the National Assembly. The Committee also considered the “The Income Tax (Amendment) Bill, 2016” (Ordinance No. XLIX of 2001). Chairman, FBR apprised the Committee about the main purposes of the Bill. He said that prior to Finance Act, 2016; fair market value for the purpose of probing the source of investment in acquisition immovable property was determined by the Commissioner. After number of the meetings with business community and various associations of realtors, Pakistan Federation Chambers of Commerce and industries and Chambers of Commerce of all four provinces it was agreed that instead of valuation to be made by approved valuers of State Bank of Pakistan. The FBR will notify fair market valuation table itself after consultation all stake holders. The Members were of the opinion that principally it was a good decision by the government. However, the Committee Members have shown their concern about the valuation procedure proposed by the government.
Therefore, it was decided by the Committee that the Honorable Members will send their recommendations for onward submission to FBR, and FBR will revisit the Bill, accordingly. The Committee also decided that said Bill would be considered in its next meeting. The Committee decided that all stakeholders will be invited in the meeting.

4. The Committee deferred agenda item No. (v), above due to the absence of Honorable Mover. While considering the proposal regarding differential of income tax between commercial importers and industrial importer. The Committee unanimously recommended the subject proposal and directed FBR for further necessary action in this regard. The Committee deferred agenda (viii), above.

5. The Chairman, FBR briefed the Committee about the Panama Papers issue and actions taken in this regard. He clearly stated that the main role of FBR was to moniter the matter whether the tax has been paid on the income and transaction of funds by the citizens of Pakistan or not? He told the Committee that FBR has taken some important measures with regard to the investigation on Panama issue. He said that Directorate General of Custom Intelligence was given a task to investigate the matter. Director General, Custom Intelligence informed the Committee that certain constraints were there before starting the subject assignment, because incomplete information was published by media. However, 444 cases were found by custom intelligence, accordingly FBR have investigated and traced 303 addresses. Later on, notices were issued under income tax section 176, Ordinance, 2001, to these 303 individuals asking about different information. However, FBR has received 94 responses in this regard, so far. Chairman, FBR ensured the Committee that FBR will do its job with devotion and honestly without any discrimination.

6. The Chairman, Securities and Exchange Commission of Pakistan (SECP) have shown its concern about the media news, wherein the integrity of the institutions has been targeted by some politicians. Mr. Abdul Rashid Godil, Member of the Committee has shown its displeasure about the statement given by the Chairman, SECP. Mr. Godil was of the firm opinion that Chairman, SECP should disclose the name of politicians.

7. The Chairman, SECP informed the Committee that SECP has provided required information to FBR about the companies registered with SECP. He said that SECP was regulator for inland companies only and SECP have no concerned with foreign companies. SECP has been issued the directions to the local companies for providing the details of their companies registered abroad in the name of same directors. The Deputy Governor, State Bank of Pakistan (SBP) informed the Committee that SBP has no role with regard to the Panama Papers.

6. Meeting was attended by Mr. Saeed Ahmed Khan Manais, Rana Shamim Ahmed Khan, Mr. Daniyal Aziz, Mr. Muhammad Pervaiz Malik, Sardar Muhammad Jaffar Khan Leghari, Sheikh Fayyaz-ud-Din, Mian Abdul Mannan, Ms. Shaza Fatima Khawaja, Ms. Leila Khan, Dr. Nafisa Shah, and Mr. Abdul Rashid Godil, MNAs and besides senior officers from Ministry of Finance & Revenue, SECP, SBP.