NA bodywithdraws proposal on incentive for industrial importers

ISLAMABAD: In a case of clear conflict of interest, Chairman National Assembly’s Standing Committee on Finance Qaiser Ahmed Sheikh continuously grilled the tax machinery and at the same time it was pointed out that the business he owned himself had allegedly got reduction in tax rate on raw material on the eve of last budget mainly because of his political influence.

During the proceedings of National Assembly’s Standing Committee on Finance and Revenue which met under chairmanship of Qaiser Ahmed Sheikh here at the Parliament House, he managed to put on the agenda that industrial importer at import stage for raw material falling under chapter 25 to 55 will pay 2 percent withholding tax (WHT) as adjustable while commercial importer will pay tax at the rate of 4 percent as full and final, arguing that it was causing huge losses and underhand deals.

The FBR’s Member Inland Revenue Policy (IRP) Dr Iqbal told the committee that the rate of industrial importer of PCT items of polythene raw material stood at 2 percent while its rate for commercial importer was 3.75 percent in accordance with the recommendations of businesses and this committee.

MQM Pakistan MNA Rasheed Godil raised question that who was behind this move and inquired who owned this business sitting in this committee? He said that there was interest of someone who had used his influence to protect his business interests. The chairman of the committee abruptly asked to withdraw this incentive and said that this move was damaging everyone involved in this business.

Earlier, Asad Umar from the PTI raised the issue that why the sub-committee constituted on purchasing of properties at Dubai was not convened and its designated time of one month lapsed. He said that he had written letters to all members for bringing up this issue in their notice, but the NA panel did not take up it on its agenda in the meeting.

“It’s a deliberate move to stop the committee from probing this matter,” he added. Dr Nafisa Shah of the PPP said that no one was extending respect to the Parliament as one person was using derogatory words against the Parliament, while the incumbent regime was doing disrespect through their actions.

The committee also directed the SBP to come up with its findings on fit and proper criteria for appointment of President National Bank of Pakistan Saeed Ahmed Khan in its next meeting. On valuation rates of properties, Member FBR Dr Iqbal said that it was domain of the provincial governments to register properties deal and they made efforts to convince the province to jack up valuation rates but they did not move after which the FBR had notified its own rates in last fiscal year.

Keeping in view the anomalies, he said that the FBR had slashed down valuation rates in some parts of the selected six cities. He said that the FBR was using data of vehicles registration, property transfers and utility bills to broaden the tax base and so far they sent out tax notices to 20,000 non-filers all over the country.

Regarding mark-up on agriculture loans, the committee members complained that the government did not implement their recommendation to bring down mark-up into single digit. The ZTBL high-ups told the committee that the SBP envisaged target to commercial banks and ZTBL for extending agriculture loans to the tune of Rs1.01 trillion in the current fiscal year and added that the composite reduced lending rate was available only on loan of Rs10 to Rs11 billion where the charged mark-up would be 9.5 percent while on remaining loan the ZTBL was going to charge 12.4 and on development loan 14.8 percent.