ISLAMABAD: The Senate Standing Committee on Finance and Revenue has recommended a time bound across the board amnesty scheme, especially for the industrial. An open ended amnesty scheme can’t meet the requirements of revenue collection increase, it says.
The committee sought draft of proposed recommendations for the legislation from the Federal Board of Revenue (FBR) which agreed to frame the draft of recommendations.
The Senate Finance and Revenue Committee met here with Senator Salim Mandviwala in the chair to discuss the recent amnesty scheme given to real estate sector through Income Tax (Amendment) Act 2016.
All the members of the committee, including the chairman were critical of the FBR for keeping them in dark about the amnesty scheme. “FBR Chairman Nisar Mohammad Khan has been telling us throughout the meetings that no amnesty scheme is being floated, but how it has has been announced by the FBR for the real estate sector through Income Tax (Amendment) Act 2016?” Salim Mandviwala questioned.
Senator Osman Saifullah Khan commented that the current amnesty scheme was open ended and would not produce desired results regarding broadening of tax base as well as increasing the revenue collection. Therefore, the tax amnesty scheme should be time bound along with specified carrot and stick policy rules.
However, Dr Muhammad Iqbal and Rehmatullah Wazir aptly defended the FBR’s stance, saying that in principle, the FBR did not agree to Income Tax (Amendment) Act 2016, yet it was preoperative of parliament to propose and pass any kind of legislation.
The committee also discussed in detail the issue of Qarz-e-Hasna barrowed by the government from different segments in connection with Qarz Uttaro Mulk Sanwaro scheme and the policy adopted by the government to retire the said qarz. The committee was given assurance by the secretary finance to settle the donations amounting to Rs 332.142 million for debt retirement whereas circulars would be issued to the banks for clearance of Rs 470.659 million on account of Qarz-e-Hasna.
The State Bank of Pakistan informed the committee that a draft amendment was being proposed to declare sale of bank notes on premium as a punishable offence.
The committee recommended that effective legislative measures be taken to curtail the sale of new currency notes to currency dealers and not to the general public.
