ISLAMABAD: Federal Board of Revenue (FBR) Chairman Nisar Muhammad Khan has briefed the National Assembly Standing Committee on Finance and Revenue about the difference of income tax on commercial importers and industrial importers.
He said that FBR had fixed differential rates of income tax for commercial and industrial importers under the given provisions of the Income Tax Ordinance 2001. The said ordinance has been transformed into an act through parliamentary procedures along with recommendations moved by the Finance Ministry.
He further said that the logic behind the differential rate of income tax for commercial and industrial importers was to restrict import of some specified items by the commercial importers because import of those items by commercial importers and then sale out to industrial sector had resulted in making the doing of business costlier for them. This situation also led to widening the gap of cost of production between local producers and foreign producers. On his forceful arguments, the National Assembly Committee unanimously decided to forward proposal to FBR for consideration on the matter.
While considering the zero rating sales tax on stationery items, Nisar Muhammad Khan observed that stationary items had been kept zero rated from sales tax to proved the people access to stationary as well as to lower the cost of education in the country. It has resulted in positively in keeping the prices of books and other relevant items in the access of the common consumers. The NA body sought a comprehensive proposals from stationery associations for fruitful decision.
On another issue the committee recommended that Panama Papers, etc. and other related issues would be discussed in the next meeting of the standing committee. It was also decided that FBR will brief the committee regarding national revenue collection (NRC) as per the notice given by committee. The committee deferred the remaining agenda.
Earlier, the members were apprised by the senior representative of Securities & Exchange Commission of Pakistan about the main features of the Limited Liability Partnership Bill, 2016.This Bill will provide a new form of business structure, which would fill the gap between business firms such as sole proprietorships and partnerships. The proposed law will also provide an alternative forum for business organizations, which has the flexibility of general partnership.
The committee decided to discuss the said Bill in the next meeting of the Committee.
