ISLAMABAD-National Assembly Standing Committee on Finance and Revenue on Monday has directed the Federal Board of Revenue (FBR) to prepare a comprehensive presentation with way forward for achieving annual tax collection target during the current fiscal year.
The FBR has termed the annual tax collection target of Rs4963 billion as challenging. They informed that FBR had collected Rs2,205 billion in the first half (July to December) of the current fiscal year as against the target of Rs2210 billion. Officials said that second half is challenging in terms of tax collection. However, FBR would work hard to achieve the desired target. Opposition parties have noted that FBR would not achieve the tax collection target. Ayesha Ghous Pasha of PML-N has asked how FBR would achieve 30 per cent growth in tax collection in the second half of the current fiscal year when it had achieved only 5 per cent growth in the first half. Naveed Qamar of PPP said that FBR might struggle to achieve the target during the current fiscal year.
Meeting of the National Assembly Standing Committee on Finance and Revenue was held in parliament house, Islamabad, under the chairmanship of Faiz Ullah, MNA. Member, IR-Policy, Federal Board of Revenue (FBR) briefed the Committee about the position of Income Tax Refunds from 01-07-2020 to 31-12-2020, he said that opening balance was Rs379 billion by the 129,739 applicant, which was Rs313 billions on 31-12-2020 as closing balance. He further presented the Slab-Wise details of income tax refunds and pending refunds as on 1-01-2021. He also informed the Committee about the updated status on sales tax Refunds including released up till July-December, 2020 in FASTER and Non-FASTER Refund System. The Committee appreciated the efforts made by the Federal Board of Revenue (FBR), in this regard, however, directed that FBR may be prepared a comprehensive presentation with strategy/way forward for obtaining the Revenue targets.
Member, IR-Policy Federal Board of Revenue (FBR) explained the matter regarding Tax evasion by a Milk Company. He said that legal action under section 161 has been taken and administrative fact-finding inquiry has been ordered in this respect, meanwhile, he informed about the News Story published about tax issues of president NBP alleging accumulation of offshore assets. He said that tax proceedings in the case were in hand and at an advanced stage. However, taxpayers’ information submitted to FBR was confidential under section 216 of the Income Tax Ordinance 2001.
Maqood ur Rehman Rehmani, Vice President/Company Secretary, Honda Atlas and Mr Muhammad Babar Saleem, HR Relation Head, Toyota Indus Motors briefed the Committee about the issues being faced to Automobiles industry about Taxation, local manufacturing, causes of price hike, including new Electric Vehicles policy, and reason for asking of a level playing field for old manufacturer i.e Toyota Indus and Honda Atlas. The representative of Toyota Indus Motors also highlighted the importance of Hybrid Vehicles in the country. The Committee discussed the problems being faced to small manufacture of furniture industry of District Chiniott and directed the Member, IR-Policy Federal Board of Revenue (FBR) to a arrange the meeting for resolving the issues in this regard.
The meeting was attended by MNAs and movers, Mr Aamir Mehmood Kiani, Mr Amjid Ali Khan, Makhdoom Syed Sami-ul-Hassan Gillani, Mr Jamil Ahmed Khan, Mr Faheem Khan, Dr Ramesh Kumar Vankwani, Mr Qaiser Ahmed Sheikh, Chaudhary Khalid Javed, Mr Ali Pervaiz, Dr Aisha Ghaus Pasha, Ms Nafisa Shah, Syed Naveed Qamar and Mr Abdul Wasay MNAs have attended the meeting. The meeting was also attended by the senior officers from M/o Finance, FBR, Law and Justice and Industries & Production.