ISLAMABAD - National Assembly Standing Committee on Finance and Revenue on Thursday has expressed concerns over the process of execution of Benami Act by the Federal Board of Revenue (FBR) at ground level.
National Assembly Standing Committee on Finance and Revenue meeting was held under the chairmanship of Faiz Ullah, MNA. Chairman FBR briefed the Committee about the action taken by the FBR on the implementation of Benami Act. He said that 500 cases were identified out of which fifty-five (55) references have been launched. The Committee members expressed their concerns over the process of execution of Benami Act by the Federal Board of Revenue at ground level. The Committee noted that Anti Money Laundering Act’s rules and regulations need to be reviewed for its effective implementation.
Chairman, FBR assured the Committee that FBR always puts taxpayer facilitation as its top most priority. Robust internal control mechanism is in place to ensure transparency. Policy of non-interactive system-based disposal of business is followed i.e. all kind of notices are issued electronically bearing bar code therefore, all possible measure have been put in place to arrest the incidence of harassment. The Committee unanimously directed that FBR should launch awareness campaign for the public about the rules of AML and Benami Act.
The Committee has also discussed the issue regarding missing of non-duty paid auctioned vehicles. Member, Customs informed the Committee that subject news item has been published, distorting the facts in without seeking any input/feedback from the concerned department. He explained the facts and background of the matter. After detailed discussion the Committee recommended that all provincial secretaries of excise and taxation departments may be called in the next meeting of the Committee.
The Committee discussed the matter pertaining to levy of Regulatory Duty (RD) on stationary items (Led Pencil). The Member, Customs said that the Pencil falling under PCT heading 6909.1000 attracted CD @ 20per cent, ST @ 17per cent, ACD 7per cent, WHT 5.5per cent during the budget exercise of 2021-22, various proposals from pencil local manufacturers were received for imposition of RDS on the pencils in order to promote import substation and protection of local industry. The manufacturers requested to impose Regularity Duty (RD) @ 10per cent on imports of pencils, pens and other stationary items to save domestic industry, according to them stationary sectors were providing employment to work 20,000 skilled workers using precision advance engineering equipment and there are 5 manufacturing units in Pakistan, out of which 2 have been closed, one unit is operating partially and 2 units are in operation. However, during subsequent meeting of the Tariff Policy Board, the rate of RD was enhanced from 10per cent to 20per cent.
The Committee noted that levy of RD on any item should be considered in light of the requirements of local level. The Committee recommended that local manufacturers may be invited in the next meeting for final directions to the FBR in that regard.
The Committee discussed The Security Exchange Commission of Pakistan (Amendment) Bill, 2020, clause by clause, however, could not complete its reading, due to short of time and decided that further discussion will be carried out in tomorrow meeting.
The meeting was attended by Dr Aisha Ghous Pasha, Faheem Khan, Ali Pervaiz, Jamil Ahmed Khan, Dr Nafisa Shah, Amjad Ali Khan and Makhdoom Syed Sami ul Hassan Gilani, MNAs and Minister for Finance and Revenue besides the senior officers from M/o Finance and Revenue, and Federal Board of Revenue.