ISLAMABAD: The Senate Finance and Revenue Committee, on Monday, proposed a strong mechanism for division of divisible pool between the federal government and provinces to resolve the mistrust between both sides.
The committee also held clause wise review of the budget proposals moved by the members of the committee to the federal budget 2016-17. The committee is bound to finalize the recommendations by today (Tuesday).
Committee met here with Chairman Salim Mandviwala and reviewed other matters related to customs tariff, sales tax on goods, input tax tariff and valuation of property. FBR officials informed the committee that FBR was persuading those taxpayers who were paying sales tax but not income tax.
The committee was told that system of both the FBR and Sindh Board of Revenue (SBR) is being managed by Pakistan Revenue Automation (PVT) Ltd. (PRAL). Even then both the tax authorities differed on the tune of revenue collection and their share in the total collection.
SBR claims Rs32 billion whereas FBR claims Rs28 billion on the other. This difference is only due to the fact that 18th amendment devolved the authority of sales tax collection on goods to the SBR. But at the same time, SBR has also declared the imposition of customs tariff a clear violation of 18th amendment.
The committee proposed a strong mechanism for division of divisible pool between the federal government and provinces to resolve the mistrust between both the parties. FBR officials told committee that 57.5% of total revenue collection was distributed to provinces while 43% rested with the federal government.
The committee members proposed restoration of DC system for accurate evaluation of property and registry of properties. FBR officials informed the committee that powers of the commissioner would be increased as well as committee would be formed which would submit evaluation report of any property in eight days.
