A member of the committee Asad Umar stated that around Rs 800 billion properties were purchased by Pakistanis during the last four years and the amount was transferred without any authorisation. He regretted that FIA has been able to collect information of only 100 Pakistanis and if these are put in prison, the country would get considerable revenue, he added.
The committee was displeased with the replies of FIA and decided that FBR, FIA, SECP and NAB officials would be summoned in the next meeting to get response from them on the questions asked by the members regarding those Pakistanis who have purchased properties in Dubai. Asad Umar also suggested that GST rate of 17 per cent should be reduced to 15 per cent in the budget. The committee was of the view that FBR should be made corruption-free.
Asad Umar said that heavy reliance on indirect taxes is unfortunate. He was of the view that direct wealth tax @ 0.5 per cent (adjustable) should be charged by the government for increasing the revenue collection. While considering the suggestions received from Karachi Chamber of Commerce, the committee decided that detailed discussion would be held on the report of Tax Reforms Commission in the next meeting as committee members' viewpoint was that the recommendations of the Karachi Chamber have already been addressed in the report of Tax Reforms Commission.
The chairman of the committee said that this committee should thoroughly consider the proposals received from stakeholders for onward submission to Finance Division and the meeting decided to have an exclusive meeting of the committee on budget proposals on 26th April, 2017. The committee also decided that stakeholders and the FBR would also be invited in the meeting.
The committee also discussed that digital money promotion mechanism should be considered by the FBR and State Bank of Pakistan for increasing the revenue. The committee considered the proposals of Pakistan Real Estate Investment Forum (PREIF) and recommended that the government should allow the real estate sector for declaration of actual property value and taxation on the said value should be minimised. The committee also supported the proposals of real estate sector to some extent; however, the committee decided that real estate stakeholders would be invited in the next meeting for further discussion in this regard.The committee also discussed the proposals received from Cotton Ginners Association and supported the suggestions of the industry. The committee also decided that representatives of Cotton Ginners Association should be summoned in the next meeting.
Copyright Business Recorder, 2017