ISLAMABAD: The Federal Board of Revenue (FBR) is mulling to increase the duties on the imported vehicles in the budget 2014-2015, which would increase the prices of the cars in the country.
Background discussions with FBR officials have revealed that government is likely to increase the duties on the import of vehicles in the budget. The official hinted that government might increase duties on more than 1300cc cars. The proposal would enhance the car prices in the country if approved by Finance Minister Senator Ishaq Dar.
The officials informed that government is considering many other proposals to generate additional revenue next year that included imposition of federal excise duty (FED) on several commodities. The government is likely to enhance the FED on cement from 400 per metric tones to 500 PMT in the budget that would increase its prices. Similarly, the government could impose FED on cosmetics, paints & varnishes and lubricating oils in thee budget.
However, the officials were of the view that government has no intention to impose duty on the import of gold. According to a senior official of the FBR the government has not yet finalized the tax exemptions to be withdrawn in the upcoming budget, as he said, “Government is working with relevant stakeholders in this regard”.
Meanwhile, Dar, while chairing a meeting on budget, said that all discriminatory SROs will be abolished in a period of three years and all the stakeholders are working together in this regard. He said that we believe in consulting all stakeholders including chambers of commerce, trade bodies, representatives of the industries, exporters and importers in the process of budget making.
Dar chaired a meeting with the presidents of Chambers of Commerce (FPCCI, KCCI, LCCI, QCCI, FCCI, Rawalpindi/Islamabad CCI, Gujranwala CCI, Sialkot CCI and Hyderabad CCI) at the FBR to discuss budget related proposals.
The finance minister urged the chambers and business community to stay engaged with the FBR for consolidation of budget proposals. He assured them that there will be continuity of economic policies in the country and the reform process will be completed within a period of three years. –Imran Ali Kundi
He said that the policies of the PML-N will fill the trust deficit between FBR and traders and there will be win-win situation for the business community and the government. He welcomed proposals from the trade representatives and assured them that the government will give a serious consideration to their proposals before finalizing budget.
The chamber representatives discussed in detail their issues and recommendations. They appreciated the work being done by the Finance Ministry and FBR for SROs rationalization. The traders appreciated strengthening of Pak rupee and observed that it will have positive impact on the economy. They assured the finance minister for their cooperation in bringing into the tax net all those traders who are not tax payers. The traders also appreciated finance minister’s personal interest in sales tax refunds. There was a general sense of satisfaction on the economic policies of the government and expectations that reforms will bring positive impact on the country.
The finance minister said that it is high time that we all should join hands for our future generations and promoting tax culture will allow the government to spend in socio-economic uplift of the country. He informed the traders that the finance ministry has been very strict in bringing down the expenditure of the Federal Government. He said that every rupee of the taxpayers money will be spent wisely and we will not allow corruption at any all level of the government.