ISLAMABAD: The Senate Standing Committee on Finance and Revenue, approved 50% cut in the federal excise duty on air tickets for domestic flights. Committee also endorsed import duty in equal ratio on the imported Hybrid and electric cars. These proposals were moved by the Deputy Chairman Salim Mandviwala who had also been chairman of the committee in his previous tenure as Senator.
However, committee referred the issue of unequal rate of tax and duty on the locally produced and imported fertilizers to the Federal Board of Revenue (FBR) for settlement; there is 5% tax on locally manufactured fertilizers whereas there is only 2% duty on the imported fertilizers.
It makes the local industry difficult to compete with the imported fertilizers therefore local fertilizers companies have been raising this issue with the concerned quarters for long. Now the FBR will look into the issue and try to pacify the reservations of the domestic industry.
Senate committee met here with Chairman Farooq H Naek in the chair to discuss the budgetary proposals moved by the private sector regarding taxes, federal and regulatory duties on the export and imports of the goods.
Chairman of the committee observed that after thorough review of budgetary proposals moved by the FBR had been made more effective for promotion of investment and industrialization in the best national interests and committee had finalized its recommendations and these recommendations would be laid before the House in the form of committee report.
While reviewing the budgetary proposals moved by the private sector, the committee approved imposing tax on the import of potassium and chloride instead of sales tax on the output of match industry. This decision was made in the light of observations from the match manufacturers that unregistered match manufacturers were causing financial damage to the taxpaying manufacturers.
