ISLAMABAD - A parliamentary committee on Tuesday has sought the details of the government's agreement with China State Construction Engineering Corporation Limited (CSCECL), which had received Rs11 billion tax exemption from the Federal Board of Revenue (FBR).
The Senate Standing Committee on Finance and Revenue, which met under the chair of Senator Saleem Mandviwalla, has once again discussed the calling-attention notice submitted by senators for giving tax exemptions to the Chinese company, which is constructing Karachi-Peshawar Motorway (Sukkur-Multan section).
The FBR on the approval of Economic Coordination Committee had given an exemption to the tune of Rs11 billion to the Chinese firm.
National Highway Authority (NHA) Chairman Jawwad Rafique Malik informed the committee that government had given tax exemption to the Chinese company under the framework of China Pakistan Economic Corridor (CPEC).
Three companies had participated in the bidding process of Karachi-Peshawar Motorway (Sukkur-Multan section). However, China State Construction Engineering Corporation Limited had offered Rs400 billion for the construction of the Motorway. The government had given tax exemption the company as it provided in other projects of the CPEC, he added.
Senator Noman Wazir said that government is borrowing at higher interest rate for the CPEC projects. The volume of the loan is increasing and next generations would have to pay its price.
He accused that it was connivance of the NHA and China State Construction Engineering Corporation Limited for getting tax exemptions worth of Rs11 billion.
Committee chairman Mandviwalla said that government had given the tax exemption after one and half year of the issuing tender of the project.
"Local industry is suffering due to the tax exemptions given to the Chinese companies," he said and added that government should treat local and Chinese companies equally in terms of tax exemptions and other incentives.
Benazir Income Support Programme Chairperson Marvi Memon gave detail briefing the committee on the functions of the BISP.
She informed that BISP is providing assistance to 5.6 million people. The BISP is transferring money to 59 percent beneficiaries through Benazir debt card, 40 percent through biometric and one percent through Pakistan Post.
She further said that government would transfer the 100 percent money through biometric system. The government had so far blocked 1.2 million cards and it had enhanced the BISP budget from Rs70 billion to Rs121 billion.
She said that BISP is providing Rs4834 to people on quarterly basis.
The committee should recommend the government to enhance the stipend to Rs5000 on quarterly basis, she added.
The committee has also discussed the rescheduling of loans of the National Bank of Pakistan.