About the final revenue collection figures for 2016-17, he said that the tax collection figures have yet to be finalized for the last fiscal year ie 2016-17. Till July 17, final revenue collection figures would be available with the FBR which would be provided to the committee. The FBR chairman informed the committee that the export package is also in progress and some amendments have been made in it. The funds of Rs 6 billion would also been released. The incremental condition of the rebate Drawback of Local Tax and Levies (DLTL) would also be reviewed.
In the presence of textile sector, FBR Member Inland Revenue Policy Dr Muhammad Iqbal said that since July 2017, Rs 350 million rebates have been issued to 932 exporters. Some amounts of refunds have been also been made. The committee deferred the FBR briefing on revenue collection for the last fiscal year till its next meeting.
MNA Asad Umar of Pakistan Tehreek-e-Insaf (PTI) informed the committee that on the directions of special bench of the Supreme Court overseeing the implementation of the Panama Papers case verdict, Federal Investigation Agency (FIA) registered an FIR against Chairman Securities and Exchange Commission of Pakistan (SECP) Zafar Hijazi for tampering with the official record. Despite registration of the FIR as record tampering in case of Chaudhary Sugar Mills has been proved, Hijazi is still working as SECP chairman. The SECP chairman should temporarily be removed from his office, Umer demanded. The finance committee sought legal opinion/ruling from Law Division on the issue of suspension of SECP chairman within the next 15 days.
In a written reply to the finance committee, the FBR informed that the revenue collection target fixed for fiscal year 2016-17 was Rs 3,621 billion which was revised downward to Rs 3,521 billion. The target is usually fixed keeping in view the economic indicators like GDP growth, inflation, large-scale manufacturing and imports. Furthermore, different revenue and administrative measures are also taken to reach the target assigned.
The collection figures for financial year 2016-17 have not been finalized as yet. This is due to reconciliation of revenue figures with State Bank of Pakistan and Accountant General of Pakistan (AGPR). The target of Rs 3,521 billion revenue was challenging due to the fact that relief measures of sales tax affected revenue adversely to the tune of Rs 169 billion. The relief measures were taken in POL products, fertilizers, zero-rated sectors, pesticides and Prime Minister's Textile Package aimed at boosting economic activity in the country that will lead to enhance revenues in the medium-term.
Copyright Business Recorder, 2017