The year-wise exemptions of sales tax and income tax revealed that Rs 93.908 billion was exempted in 2011-12; Rs 71.831 billion 2010-11, Rs 73.943 billion 2009-10 and Rs 58.364 billion in 2008-09. The procedures to waive off taxes by FBR (Inland Revenue) with regard to Income Tax, Sales Tax and Federal Excise Duty are enshrined in the respective taxing statutes ie Income Tax Ordinance, 2001, Sales Tax Act, 1990 and the Federal Excise Duty Act, 2005. There are two types of waive offs: Firstly, the exemptions which are laid down within the aforementioned tax laws andare claimed by the taxpayers at the time of filing tax returns. Secondly, the government has the option to allow exemptions/waive offs of taxes any time during the year keeping in view the economic realities through SROs/notifications, he added.
Abbas Khan Afridi maintained that under the Income Tax Ordinance, 2001, these notifications are issued u/s 53(2) of the Income Tax Ordinance, 2001. Likewise, Section 13 of the Sales Tax Act empowers the Federal Government to allow waiver to various taxpayers through SROs/notifications. About the total amount of customs duties waived off during last four year, the State Minister told the house that the customs duties waived off during fiscal year 2011-12 was Rs 114, 264 millions.
The exemptions granted under different Statutory Regulatory Orders (SROs) issued under section 19 of the Act are not specific to any individual. Anyone who fulfils the conditions of the specific SRO can claim the benefit under that Notification. Amounts of one million and above waived-off in terms of Rule 20 of the Act is attached as Annex-A while the amount waived-off under Rule 215-A, he added.
MNA, Sheikh Salahuddin during question hours asked the state minister to inform the house about the economic condition of Pakistan as compared to its neighbouring countries. Abbas Khan Afridi while replying to the question told the lower House that real GDP growth of Pakistan was 3.7 percent for the year 2012 while the GDP growth of India for 2012 was 6.9,Bangladish 5.9 and Sri Lanka was 7.5 for 2012. Inflation rate in Pakistan was comparatively high than aforementioned countries as it was 11.0 for the year 2012.
The economic condition of Pakistan as compared to its neighbouring countries for the year 2012 indicates that Pakistan's comparative position vis-à-vis other South Asian economies is not very healthy. The economy of Pakistan is passing through a period of slow growth mainly on account of natural disasters, security challenges, energy crisis, slow global economic recovery, sharp increase in fuel and commodity prices and weak capital inflows. Despite internal and external vulnerabilities, Pakistan's GDP growth rate gradually increased from 1.7 percent in 2008-09 to 3.7 percent in 2011-12, the State Minister informed the House.
To a question raised by MNA Shagufta Sadiq about the year and country-wise total amount of foreign exchange sent to Pakistan by the Overseas Pakistanis during the last four years till date, Afridi informed the House that $4.96 billion remittances were received during financial year 2012-13.