ISLAMABAD: The Federal Board of Revenue has shown its willingness to grant tax exemptions to House Building Finance Corporation (HBFC).
The meeting of the Senate Standing Committee on Finance was chaired by Senator Saleem Mandviwalla. HBFC’s member of Board Shahbir Zaidi told the committee that this state institution was heading towards collapse and the government would have to provide some kind of subsidy to rescue it otherwise it would become another ailing entity.
He said that the HBFC made business plan for five years and the government would have to either grant them permission for tax free bond or export refinance type subsidy from the central bank or combination of both could be worked out to survive this dying institution.
The MD of HBFC said that they had so far provided Rs 54 billion loans for housing provision since its inception but they prepared five year’s plan to jack up this amount up to Rs 100 billion within few years’ period. This business plan, he said, was forwarded to finance ministry and SBP officials.
The chairman of the committee directed the HBFC to share their business plan with them so that they could convince the government to provide them rescue package in a bid to avoid its complete collapse.
The committee was informed that a proposal of issuance of tax free bonds was forwarded to the government and Federal Board of Revenue to mobilise finances for HBFC but the proposal was not taken seriously.
On the issue, FBR Member (IR policy) Rahmat Ullah Wazir stated, “Although we are withdrawing tax exemptions and concessions, yet we are ready to grant tax exemption in the larger interest of the country.”
The committee also took up the issue of Korean companies operating in Azad Jammu & Kashmir where the FBR official was asking for money from the companies for providing them their stuck up refunds. Wazir told the committee that the FBR had repatriated his officer who was working in the AJK on deputation basis.
