ISLAMABAD (our reporter):- The Senate Standing Committee on Finance and Revenue has expressed concern over regulatory duty being used by the Federal Board of Revenue (FBR) as revenue measures instead of protection of local industry.
The Committee met under the chairmanship of Senator Saleem Mandviwala here on Wednesday. The Chairman of expressed his concern during the meeting of the committee during discussion on the Finance Bill 2023 on Wednesday. He said that the RD should be used for production and promotion of domestic industry instead of revenue promotion.
The issue surfaced following member custom Suraiya Ahmed Butt member custom policy remarks that there would loss of Rs 4.5 billion on account of one tariff line reduction/removal with regard to used cloths. She added that FBR would suffers loss of Rs 4.5 billion and reduction of 152 RD lines would cost the revenue of Rs 5.5 billion.
Upon this the a senior official of the Commerce Division stated that in the last policy board meeting, the FBR was recommended to reduce the RD of 596 lines on compliance of the international commitments. The commerce division official said that the in 2019, the tariff rationalization was assigned to the Tariff Commission Board which was not consulted by the FBR with regard to AIDP tariff proposals.
The Committee has also recommended to the government to revive subsidy worth Rs100 billion on energy for textile industry. The All Pakistan Textile Manufacturing Association (APTMA) briefed the committee that the government has removed subsidy to export oriented sector worth Rs100 billion for providing cheaper electricity to the sector. They said that the government was providing electricity on Rs.19/unit and Rs.13/unit after allocating Rs.60 billion on electricity and Rs.40 billion on gas for the current fiscal year/
The officials of the Association told the forum that the authorities will provide electricity by 17 cent and 12.7 cent gas to the textile industry after the elimination of subsidy during the upcoming fiscal year.
The committee also expressed grieve concerns of the misuse of facility extended to the Ruling Family members of UAE, Saudi Arabia, Behrin and Qatar. The committee instructed to the FBR to confiscate the vehicles which were imported on the names of Shahi families but they did not re-export.
The Chairman Committee claimed that these vehicles are being used by local persons which is illegal and they should be confiscated.