ISLAMABAD: The Senate Standing Committee on Finance Revenue and Economic Affairs has directed the Federal Board of Revenue’s (FBR) Chairman to submit a report on raiding the premises of Metro Shoes.
The committee meeting, held under the chair of Senator Telha Mahmood for the third consecutive day, was informed by Metro Shoes CEO Jahanzaib Nadeem that FBR’s Large Taxpayer Office in Islamabad not only raided their offices without but also residences, and harassed his family members, without any notices.
Giving details of the incident, he said that FBR had registered a “frivolous” FIR against him and the company, and has arrested his employees. “They [FBR] have directed for Rs500 million to be submitted whereas the total assets of my company equal Rs700 million,” he lamented.
Chairman Committee Senator Talha Mahmood, while took strong notice of the matter, directed member IR Operations to launch an investigation into the incident, besides obtain legality on the same and submitting a report by Monday.
Meanwhile, Committee member Senator Farooq Hamid Naek while expressing reservations on the ‘No Tax Exemption – Only Targeted Subsidy Policy’ said that only time will tell the truth of the consequences of such policies.
“Tax imposed on sewing machines of the household type is a clear example of injustice to a class of society that cannot afford branded clothing or boutique wardrobes,” he pointed out.
However, the FBR chairman replied that industrialists were misusing the free import of sewing machines. Therefore, the committee unanimously recommended a change in the word, from household type to industrial type.
The committee also omitted the suggested tax on solar panels saying that it discourages the use of innovative natural resources for the development of the country.
Senator Faisal Subzwari expressed reservations on the imposition of tax on laptops and computers stating that it is against the prime minister’s idea for a digital Pakistan.
Over a public petition by Pakistan Gems Jewelry Traders and Exporters Association (PGJTEA) Vice Chairman Muhammad Fayyaz Qureshi referred to the FBR, the committee proposed a recommendation that a meeting should be held with the senate panel on commerce, the Finance Committee, FBR and all stakeholders to deliberate on gold smuggling.
Furthermore, the chairman FBR assured that the tax department is working on levied tax in the agriculture sectors, adding that “all differences in sales tax should be eliminated in the next five months”.
The committee unanimously agreed on the proposition of fully documenting the matchbox industry and proposed recommendations to increase the fixed tax on match stick material from Rs90 to Rs110 per kg.
The committee was informed that machinery is being imported more than raw material in export processing zones after which approved the imposition of sales tax on imported machinery of export processing zones.
The committee also unanimously gave recommendations for the inclusion of insurance guarantee, bank guarantee and cheques for substances registered as drugs and medicaments under the Drug Act 1976, further recommending that guarantees may also be time bound.
Moreover, the committee recommended compulsory bank guarantees for the oil and steel industry and sought details from the FBR on cases pending with regard to the release of guarantees.
