The Senate Standing Committee on Finance, Revenue, and Economic Affairs has approved the proposal of the Federal Board of Revenue (FBR) with regard to the withdrawal of corporate guarantee for importers introduced through tax amendment ordinance on September 15, 2021.

The committee meeting was held under the chairmanship of Senator Talha Mahmood to finalize and make recommendations about the Finance (Supplementary) Bill, 2021.

Chairman FBR, Dr. Muhammad Ashfaq Ahmed, informed the committee that the tax department had also proposed withdrawal of the corporate guarantee conditions which had been incorporated in the last budget. Earlier, FBR took the bank guarantee from importers for provisionally allowing the goods. FBR had added the corporate guarantee conditions on the request of some sectors but there had been no benefit, he added.

Senator Farooq H Naek commented that it was also a good proposal, however, the insurance guarantee conditions should be added for the importers.

Senator Saleem Mandviwala asked FBR as to why it was not adding cheque conditions in this procedure.

The Chairman FBR said the tax body had dozens of cheques of FATA/PATA people. “We cannot do anything on this apart from the corporate guarantee conditions, as industries took the stay from the court and state revenue remained stuck up,” he explained.

Senator Musaddiq Malik asked the FBR to tell how many guarantees the business community had submitted to FBR. To this, the Chairman FBR said, “we do not [have any] data yet, but [it] can be provided in two weeks.”

The committee recommended adding insurance guarantee conditions in this regime also.

The Chairman FBR also informed the committee that FBR had also proposed to withdraw the valuation powers from collectors. “We will give powers to directors posted at Quetta and Peshawar for solving the valuation-related issues,” he said.

He maintained that FBR had given powers to collectors for determination the values of items imported from Afghanistan and Iran but there were certain issues so we have the purpose to give these powers to directors instead of collectors. There was a conflict of interest as collectors not only determining the values but assessing also, he added.

Senator Farooq H Naek said that this was a good suggestion as collectors had nothing to do with a valuation if a specific department existed.

Senator Saleem ur Rehman questioned what was the past practice of determining values as associations had also approached the Senators on this matter.

The Chairman FBR replied that collectors were determining the values but now directors would make valuations. Basically, there was an administrative issue and we now going to solve this, he remarked.

The Chamber of Commerce of Quetta and Chaman also requested not only to post director adjudication but also director valuation to solve the valuation issues. A top official said, “I have personally visited Balochistan and solved the problems of the business community by posting the director adjudication and valuation in KP and Balochistan.”

The committee approved the proposal of FBR with regard to the withdrawal of powers of collectors in the determination of imported items values.

Source: Pro Pakistani