ISLAMABAD: Federal Board of Revenue (FBR) Chairman Nisar Muhammad Khan will brief the National Assembly Standing Committee on Finance and Revenue on Monday (today) on the newly imposed Rs 40 billion taxes on luxury items.
Finance Minister Ishaq Dar placed the Income Tax (Second Amendment) Ordinance, 2015 before the committee last month. On October 31, President Mamnoon Hussain promulgated the ordinance to further amend the Income Tax Ordinance 2001.
The clause-II of Article 89 of the Constitution requires the presentation of said ordinance before the either house of parliament either for approval or extension in the tenure of the promulgation of the ordinance.
Sources told Customs Today that FBR Chairman has finalized his preparations by completing file work regarding briefing related matter and material.
Moreover, the source said that collected all the required documents for answering the questions and objections of the members in a befitting manner at the time of presentation on ordinance in to the committee.
As per FBR’s view ordinance was promulgated in the light of recommendations of a committee constituted for this purpose and it dealt with tax on services that was made a minimum tax in case of companies by virtue of omission of clause 79 to Part 1 of the 2nd Schedule to Income Tax Ordinance 2001.
The proposed changes included adding clause 94 to Part IV of 2nd Schedule to the Income Tax Ordinance read with changes brought in section 153 of the Income Tax Ordinance. Minimum tax is made adjustable for maximum of 5 years for the following sectors (Companies not included in clause 94 i.e. sectors not given below cannot opt for such adjustment) including freight forwarding services, air cargo services, courier services, manpower outsourcing services, hotel services, security guard services, software development services, tracking services, advertising services (other than by print or electronic media), share registrar services, engineering services or car rental services.
When contacted a well placed source at National Assembly Finance Committee secretariat told Customs Today that Secretary Finance Waqar Masood will also brief the committee on the State of Pakistan’s economy.
Moreover, members would also discuss the five, chronological pending bills/matters including Foreign Exchange Regulation (Amendment) Bill,2014, Equity Participation Fund (Repeal) Bill, 2014, the Offences in Respect of banks (Special Courts) (Amendment) Act, 2015, the Cost and Management Accountants (Amendment) Bill, 2015 and the Banks (Nationalization) (Amendment) Bill, 2015.
