ISLAMABAD: The National Assembly Standing Committee on Finance has recommended to Ministry of Finance to provide the details of write off loans of last 10 years, from the amount of Rs100 million and above.
The committee with Qaiser Ahmed Shaikh in the chair has discussed the calling attention notice moved by MNA Rana Muhammad Hayat Khan regarding inadequate laws for recovery of loans from the defaulters including waived off loans.
The committee recommended to State Bank of Pakistan (SBP) to inquire about the matter referred by the member regarding waive off loans by the government.
The committee directed the SBP to provide the details in this regard within 15 days for further necessary action.
The committee recommended that the matter pertaining to eradication of Riba should be resolved according to the Constitution of the Islamic Republic of Pakistan.
Minister of State for Finance, Rana Afzal Khan informed the committee that the system could not be abolished in one go as the country had to deal with many institutions, including international financial institutions, which worked on interest system. He further said that the ratio of interest could be reduced gradually.
While considering the implementation status of the recommendations made by the committee with regard to the deduction of markup rates on agriculture loans to the farmers, the committee once again recommended to Ministry of Finance to reduce the markup ratio on the said loans up to single digit.
The committee recommended that payment of WHT @ of 2 percent adjustable for industrial importer at import stage for raw material following under chapter 25 to 55. No Exemption Certificate would be issued to industries, commercial importers importing raw material under chapter 25 to 55 will pay @ 4 percent WHT as full and final. However, rest regime of WHT will remain the same. The committee once again recommended to Federal Board of Revenue to reduce tax rates (236k, 236c) and increase should be made where required.
The committee further recommended that FBR should directed their field offices to rectify pending anomalies i.e. Port Qasim, Karachi, where FBR values are much more than market values.
The committee recommended that in the first instance FBR should take measures towards documentations for bringing DC values and raised those by 15 percent and notify as FBR value by removing upper cap of 236w, as it will increase massive collection of revenue.
The committee strongly recommended to FBR to resolve the issues pertaining to FBR valuation table with the consultation of Pakistan Real Estate Investment Forum (PREIF), Association of Builders and Developers (ABAD) and other concerned stakeholder from different cities.
