ISLAMABAD: Former Federal Board of Revenue (FBR) chairman Abdullah has suggested to the finance committee of the National Assembly that the government should resolve the causes of tax gap by taking administrative measures. He said that CNIC should be used to expend the tax net and comprehensive tax policies should be launched in the country. The 61st meeting of the Standing Committee on Finance, Revenue and Economic Affairs of the National Assembly was held in Parliament House under its chairman Qaiser A Sheikh.
The committee discussed “Eradication of Riba Bill, 2015” (moved by Sher Akbar Khan, MNA) and directed the Ministry of Finance to provide details regarding the measures taken by the government for eradicating interest from the banking sector.
The committee was informed by the Additional Secretary Ministry of Finance that Ministry of Finance has already convened a meeting to discuss “The Islamabad Capital Territory Prohibition of Private Money Lending Bill, 2017” (moved by Sajid Nawaz, MNA) with Ministry of Interior and Ministry of Commerce.
The committee directed to Ministry of Finance to invite the over when next internal meeting of the Ministry of Finance would be held in this regard. Additional Secretary Ministry of Finance assured that honorable mover would be invited as per the directions of the Committee. While considering “The Controller General of Accounts (Appointments, Functions and Powers) (Amendment) Bill, 2017” (moved by Asad Umar, MNA).
Additional Secretary Ministry of Finance informed the Committee that same Bill was already under consideration by the Standing Committee on Finance of the Senate and the said Committee of the Senate has recommended that all concerned departments will complete their work till January, 2018. The Committee decided that Ministry will also present the outcome of the Senate Committee in this Committee as well. The Committee discussed “The State Bank of Pakistan Banking Services Corporation (Amendment) Bill, 2017” and directed the State Bank of Pakistan to provide a comprehensive brief and powerpoint presentation on the subject matter in its next meeting. The Committee considered “The Establishment of Federal Bank of Cooperatives and Regulation of Cooperative Banking (Repeal) Bill, 2017” and recommended that the Bill may be passed by the National Assembly as reported by the Committee.
The committee considered “House Building Finance Corporation (Repeal) Bill, 2017”. The committee unanimously recommended that the “House Building Finance Corporation (Repeal) Bill, 2017” may be passed by the National Assembly as reported by the Committee. Saeed Ahmed Qureshi former Secretary Commerce was present in the meeting as financial expert. He suggested that this forum should be highlighted the main areas of economy, where the problems were being faced to the country. He further suggested that government should provide one window operation in all segments of life. Abdullah Yousuf, former Chairman FBR remarked that government should focus on three main areas causes of fiscal deficit, privatization and power sector.
He said that circular debt in 2013 was about US$580 Billion, which has been increased, again at same level. He also suggested that government should resolve the causes of tax gap by taking administrative measures and comprehensive tax policies should be launched in the country. He stated that CNIC should be used to expend the tax net in the country. The Committee appreciated the view points of the financial experts. The Committee recommended to Ministry of Finance and State Bank of Pakistan to provide the replies at the earliest on Increase in financial year debt and liabilities from June 30, 2016 to October 31, 2017, Decline in State Bank of Pakistan financial year reserves from October 31, 2016 to October 31, 2016, Forecast for financial year debt and liabilities for June 30, 2018 and State Bank of Pakistan reserves for June 30, 2018, Mitigation plans for averting external account crisis and SBP data for credit swaps from June 30, 2016 to October 31, 2017.
The Secretary Board of Investment informed the Committee about the special economic zones in the country. He said that special economic zones will be developed by public sector, private sector and public partnership basis. He added that one time exemption from all custom duties and taxes plant and machinery imported into Pakistan for the development, operation and maintenance of the SEZ would be provided to the industrialist.
The committee recommended that BOI should facilitate the foreign investors by providing all possible facilities in Pakistan including their boarding and lodging to attract the investors in the country for development of the SEZ under the umbrella of CPEC.
The meeting was attended by Rana Shamim Ahmed Khan, Isphanyar M. Bhandara, Sardar Muhammad Jaffar Khan Leghari, Ms. Khalida Mansoor, Dr. Shizra Mansab Ali Khan Kharral, Syed Mustafa Mehmud and Asad Umar and Abdul Rashid Godil, MNAs, besides the senior officers from Ministry of Finance & Revenue, SECP, FBR, SBP and stakeholders.
