ISLAMABAD: The Federal Board of Revenue (FBR) has addressed almost all the grievances of the real estate stakeholders regarding withholding tax charges on bank transactions for non filers. Last year, through Finance Bill, an amount of 0.4 percent is charged from every bank transaction exceeding Rs 50,000 from a non-filer.
Prior to levying this WHT on bank transactions, then Finance Minister and FBR Chairman had held detailed discussions with the real estate representatives bodies. However, the real estate industry and other stakeholders, levy of this amount had made doing of business costlier for them; therefore, they had contacted the National Assembly Standing Committee on Finance and Revenue for the redressel of their concerns.
On Tuesday, the National Assembly Standing Committee on Finance and Revenue, placed the concerns and reservations of real estate industry before the Member Inland Revenue (IR) Dr Muhammad Iqbal and his team members who expressed strong resolve to address the issues / anomalies in future with the consultation of real estate stakeholders in this regard.
The committee also discussed the matter pertaining to industrial importer at import stage for raw material falling under chapter 25 to 55 to be charged with 2% adjustable WHT with non-issuance of exemption certificate to industries. The Chapter 25 to 55 also provided an option to levy 4% WHT on commercial importers of raw material whereas rest of WHT regime remained the same which was for finished product.
The committee members have shown their displeasure about non-cooperative attitude of Federal Board of Revenue (FBR) for implementing the recommendations of the committee. The committee discussed the property issues being faced by the real estate sector with regard to the anomalies highlighted by Pakistan Real Estate Investment Forum (PREIF) and ABAD, etc.
The Committee recommended that real estate stakeholders would be called in its next meeting for further deliberations on the anomalies. The Committee Members were of the view that Section 236-W of Income Tax Act, 2016 should be reviewed for removing the upper cape, defined by FBR.
Qaiser Ahmed Shaikh Chairman of the Committee stated that government will achieve more revenue by taking such kind of positive measures. He was also of the view that FBR officers should understand the problems being faced by the general public. He added that government should further introduce public friendly policies for business community in the country, as well.
While considering “The Controller General of Accounts (Appointments, Functions and Powers) (Amendment) Bill, 2017” (moved by Asad Umar, MNA). The Secretary Ministry of Finance informed the Committee that subject Bill had already been considered in the meeting of the Standing Committee on Finance of the Senate, wherein, it has decided that subject Bill should be referred to the Standing Committee on Cabinet, because Ministry of Finance has already been taken its action in this regard.
The committee decided that the bill should be submitted before the speaker for further guidance whether it relates with Standing Committee on Cabinet. The committee deferred agenda item regarding presentation of report on the recommendations of the Committee about misappropriation in promotion process for National Bank of Pakistan’s employees, due to the request of the Governor State Bank of Pakistan.
The Committee once again expressed its concern on the promotions made by the NBP and directed to President NBP to consider the appeals received from NBP employees. President NBP informed that they have received more than five hundred appeal applications for consideration. He further assured that NBP will address the grievances of NBP employees on priority basis, as requested by the honorable members.
The committee once again recommended that agriculture loaning to small farmers should be on lowest markup rates, which could be single digit. The Committee was informed by the President; NBP that government has decided to provide Rs. 300 Billion to small farmers on zero markup ratios. He added that NBP share in said value would be Rs. 11 billion for disbursement of loans to agriculture sector.