ISLAMABAD: A team of the Federal Board of Revenue (FBR) is likely to visit Switzerland during the current month to hold talks with Swish authorities on Pakistan’s membership to the Organization for Economic Co-operation and Development (OECD) and other crucial issues.
The OECD is an international economic organization of 34 countries, founded in 1961 to stimulate economic progress and world trade.
According to Finance Minister Ishaq Dar, after successful conclusion of talks with Swiss authorities, Pakistan will become member of the OECD and then will have access to data available with 34 member countries.
While briefing the National Assembly Standing Committee on Finance and Revenue, Dar said that the federal government had made required amendments in the finance bill for the membership of the said organization. Therefore, after the passage of finance bill by both the houses of the parliament, Pakistan will become member of this 34-nation organization.
However, he said that it would take time for evolution of a consensus or agreement with Swiss authorities due to prescribed lengthy procedure for the membership of the said organization. He said that Britain was also member of the OECD therefore Pakistan would be able to get required information and details from UK and other countries to resolve the issue of offshore companies.
Chairman FBR Nisar Muhammad Khan briefed the committee about withdrawal of tax exemptions from on dairy, agriculture, cement and stationary sectors, saying that government could not afford zero rated policy for these sectors due to enormous tax evasions in the disguise of these sectors.
He further said that FBR had unearthed mis-declaration and wrong reporting of income which was shown earned from these sectors by the taxpayers to evade taxes. It had inflicted loss of billions of rupees to the national exchequer.
However, committee recommended continuity of zero rated tax policy for these sectors. At this the Finance Minister and Chairman FBR asked the committee to go ahead in presenting its recommendations before the parliament and ultimately parliament would decide the matter.
