The Senate Standing Committee on Finance has recommended that the concerned government divisions dissolve the lifetime token tax on small old vehicles and reduce the taxes on cosmetics and related products.
These recommendations were made after the attendees of the meeting discussed the budget for FY 2021-22.
Apart from the underlined order of business, various queries were put forth before the Federal Board of Revenue (FBR) and the National Tariff Commission (NTC) regarding adjustable tax rates on imports, among other issues.
In response to a question regarding the adjustable tax rates for crude oil, a statement by the FBR detailed that crude oil has remained zero-rated for many years, and the 17 percent sales tax that comes with it is adjustable as per the regulations.
Regarding the rumors about a parallel budget alongside the Finance Bill 2021, the NTC officials informed the committee that all the issues regarding domestic industries, including filament yarn manufacturing, will be addressed by the NTC at a later date.
While speaking about the issue of taxation on exempted items, the Minister for Science and Technology, Shibli Faraz, remarked that a symbolic tax on such items should be instituted as a component of the Finance Bill 2021.
Later, the Senate Standing Committee on Finance directed the FBR to study the letter by the Umrah and Hajj tour operators whose offices had been sealed by the anti-graft watchdog for their non-payment of the withholding tax. The committee also asked the Ministry of Religious Affairs and Interfaith Harmony to submit its account of the matter.
Via The News