Finance Committee Approves Deactivation of SIM Cards to Enforce Filing of Returns

The Senate Standing Committee on Finance, Revenue and Economic Affairs has approved the proposal to disable cellphone sims to enforce tax filing.

The meeting of the Standing Senate Committee on Finance, Revenue and Economic Affairs was held under the chairmanship of Senator Saleem Mandviwala.

FBR authorities informed the committee that they had proposed to disable mobile phone sims to enforce the filing of tax returns. The tax department imposes a 0.1% penalty for each day after the due date for tax filing, he added.

In addition, the Chairman of the National Tariff Commission informed the committee that changes had been made to the finance bill concerning the rationalization of tariffs for the packaging and dyestuffs industry.

Senator Anwar-ul-Haq Kakar said the export of raw materials should be discouraged so that the supply of raw materials in the country can be increased to promote industrialization.

FBR officials briefed the committee on tax exemptions on the import of armored buses and special vehicles for the safety of foreigners working on CPEC and major energy projects. They said that these special vehicles could only be imported after the NOC from the Department of the Interior and that only federal and provincial governments would be allowed to import such vehicles.

FBR officials told the committee that now payments of more than 1 million can only be made through digital means, the purpose of which is to record financial transactions.

Opposition Leader Shahzad Waseem, citing FATA/PATA, questioned that despite tax exemptions granted in these areas until 2023, notices are being sent to the people. The FBR Chairman responded that FATA/PATA only enjoys income tax and sales tax exemption and notices were sent regarding Federal Excise Duty.

Dr Ayesha Ghous Pasha, during a briefing to the committee regarding gain tax, said that the tax period on immovable property is extended from four to six years so that people’s attention can be drawn from non-productive investments to productive investments in order to encourage industrialization.

Exemption under international agreements was reviewed by the committee and recommended to omit the resident person only because of the provision of services under the agreement. A new insertion in the exemption under international agreements will also give the federal government the power to relax the rules and provide an exemption on any aid and development assistance grants.

In addition, the amendment on the salary paid to an employee which allowed the abolition of certain tax credits within the framework of the reform of personal income tax was also accepted by the committee.

The committee also accepted the new insertion of 1DC and 1DD which will allow withholding tax on services provided by international money transfer operators and withholding tax on services provided by card network companies and payment gateways.

The committee was also informed that the aforementioned newly inserted sections have been given final tax status for non-residents.

The committee was informed that the new insertion of article 7A will allow companies in certain industries subject to the minimum tax regime on their importation, to control the misuse of the importation of raw materials, was also accepted by the committee .

The business community also participated in the committee and passed on their proposals for reducing the prices of edibles through tax exemption to give a sigh of relief to the general public.

The Bakers and Sweets Association representative proposed to waive the previously implemented 17% sales tax on baked goods and sweets as the most commonly used edible product for all classes of society who must pay an additional 9.5% fee, the matter was referred to the Anomalies Committee for consideration of the proposal.

The committee also recommended imposing 20% ​​taxes on sugary drink juices, implying that they are harmful to health.

Comments are closed.