It has been decided that a committee from government of GB/ Assembly would be constituted by the government of GB to hold meeting with GB Council to finalize the draft of fresh Income Tax Act. Joint Secretary Gilgit-Baltistan Council Secretariat asked Commissioner Inland Revenue Gilgit-Baltistan to give a presentation on taxation issues of Gilgit-Baltistan. The Commissioner IR GB gave detailed and comprehensive presentation in this regard.
After presentation, the chairman of the working group asked Sultan Raees, Chairman Awami Action Committee Gilgit-Baltistan, to brief the meeting on the recent taxation issues. Sultan briefed the meeting with regards to recommendations made by the parliamentary committee and demanded that Gilgit-Baltistan Council Income Tax (Adaptation) Act, 2012 may be withdrawn immediately. He further stated that fresh bill of Income Tax shall be consulted with Gilgit-Baltistan Legislative Assembly.
Chairman of the working group MNA Malik Ibrar Ahmad asked Aurangzeb Khan, Minister for Law & Parliamentary Affairs GB, to brief the meeting with regard to stance of the GB government on the recent taxation issues. Aurangzeb categorically stated that the government of GB endorsed all the three recommendations of the parliamentary committee. He also briefed the meeting regarding history of the taxation issues, recent movement of the traders associations, Awami Action Committee and efforts of the government in this regard. He further stated that tourism & mineral subjects may be transferred to government of GB and sharing formula of indirect taxes being collected by FBR shall be sort out immediately.
Capt F Shafi (retd), Opposition Leader in the GB Legislative Assembly, clearly stated that the only viable option is to accept the proposals made by the parliamentary committee. He supported the slogan of "no taxation without representation" and demanded constitutional rights as well.
Akbar Taban, senior GB minister who is also chairman of the parliamentary committee, stated that the federal government started projects in GB with more than hundred billion rupees from Federal Public Sector Development Program (PSDP). He fully owned the three recommendations of the parliamentary committee and requested for early solution of the issue. Abbas Rizvi, Member GB Council, Farman Ali, Minister LG&RD GB, Ghulam Hussain Athar, President Trader Association Baltistan Division, and Kacho Imtiaz, Member GB Legislative Assembly, also supported the recommendations of the parliamentary committee and stated that they are willing to pay tax if constitutional rights are given.
Ashraf Sada, Chairman Standing Committee GB Council, appreciated the efforts being made by the Gilgit-Baltistan Council and federal minister for KA&GB. He condemned the role of Indian media which is exploiting the peaceful movement of the trader association. He also highlighted the good working relations between the GB Council and GB government and committed that the Council will endorse all decisions of the government.
Chairman PAC GB Council Saeed Afzal and Additional Collector Custom GB Karam Ehahi opposed the withdrawal of Gilgit-Baltistan Council Income Tax (Adaptation) Act 2012 and suggested that workable amendments can be made in the existing law. Chief (Rules) FBR Zulfiqar Hussain stated that income tax is the domain of Gilgit-Baltistan Council and FBR has no role in its legislation/ implementation. However, the FBR will provide technical support as and when required.
After detailed discussion, the meeting endorsed all three recommendations of Parliamentary Committee of Gilgit-Baltistan Legislative Assembly. The Gilgit-Baltistan Council Income Tax (Adaptation) Act 2012 shall be presented before the Gilgit-Baltistan Council to repeal this act immediately. At the same time a fresh income tax act will be presented before the Council after consultation with the government of Gilgit-Baltistan/ Assembly.
A 3-4 members committee from the government of GB/ Assembly would be constitute by the government of GB to hold meeting with GB Council to finalize the draft of fresh income tax act. The parliamentary committee of GB Legislative Assembly, working group of GB Council on taxation, Chairman Awami Action Committee and representatives of Trader Associations endorsed the said decisions.