Senate panel reviews tax exemptions, border security
ISLAMABAD: A subcommittee of the Senate Standing Committee on Interior and Narcotics Control on Monday reviewed border security mechanisms at key import entry points, alleged tax evasion through consumption of imported raw material meant for tax-exempt areas,...
ISLAMABAD: A subcommittee of the Senate Standing Committee on Interior and Narcotics Control on Monday examined border security arrangements at major import entry points, concerns over possible tax evasion linked to tax-exempt raw material, and complaints about the Senate Employees Housing Cooperative Society, according to a monitored public feed from Dawn Business.
The meeting, held at the Parliament House and convened by Senator Saifullah Abro, was attended by senators Muhammad Talha Mehmood and Umer Farooq, while Senator Dilawar Khan joined as a special invitee.
Officials of the Federal Board of Revenue briefed the committee on tax matters, including the status of tobacco taxation and the handling of imports into tax-exempt areas. They said a detailed report on the tobacco issue had already been submitted, while provisional figures on tax-exempt imports across different sectors had been compiled from manual records and would be completed within a week.
Committee members voiced concern over what they described as a wide gap between the value of tax-exempt raw materials imported and the consumption certificates issued against them. They urged the FBR to investigate the matter in depth, especially in high-value sectors such as ghee, to identify revenue losses, widen the tax net and recover any duty or tax believed to have been avoided.
The committee was also informed that about 50 cases involving rejected consumption certificates were pending in courts after affected parties secured stay orders from the Peshawar High Court. FBR officials said the high court had held that the department could not reject consumption certificates outright and should instead carry out audits. They added that the FBR had challenged the ruling before the Federal Constitutional Court.
Senator Abro directed the FBR to pursue the case strongly before the Federal Constitutional Court and said tighter scrutiny of tax-exempt raw material imports could bring substantial revenue into the national exchequer. He also asked the department to submit a comprehensive report to the committee within 10 days.
The subcommittee reiterated its intent to tighten the tax system by identifying loopholes and recommending steps to curb abuse of exemptions. It also took serious note of complaints about the Senate Employees Housing Cooperative Society, including allegations that Senate employees had not been handed possession of their plots and that the society was being managed by private individuals rather than its members.
Officials of the Federal Investigation Agency told the panel that an FIR against the society’s management had earlier been registered on the orders of the Supreme Court. The committee then asked the FIA to provide an updated report on the society’s current management within one week.
Senator Abro urged the FIA to take strict legal action against anyone unlawfully running the society and said it must remain under the control of its legitimate members. He said the committee was committed to protecting the rights of Senate employees and ensuring transparency and accountability in the society’s affairs.
This report is based on a monitored public feed and is attributed to Dawn Business.
Source: Dawn Business - https://www.dawn.com/news/2017169/senate-panel-reviews-tax-exemptions-border-security
