ISLAMABAD: The government has said that the points of sale (POS) system of the Federal Board of Revenue (FBR) would be linked with the big stores, schools and hospitals as part of automation and documentation to monitor their sales and payment of taxes.
This was stated by the FBR Member Inland Revenue (Policy), Hamid Atique Sarwar, during the discussion on the Finance Bill 2020 by the Senate Finance Committee presided over by Farooq H Naek on Thursday.
Member Inland Revenue further stated that besides retail outlets, the POS were being set up at big stores, schools and hospitals under the documentation drive of the FBR.
The Senate Standing Committee on Finance has sought list of contractors and sub-contractors working at Gwadar Port from the Ministry of Maritime Affairs for discussion during an in-camera meeting of the committee.
Naek stated, "Entire finance committee strongly support development of Gwadar Port and Balochistan as it is a gateway to Central Asian countries and would unleash development with the help of China-Pakistan Economic Corridor project."
The chairman said that the committee had decided to defer the agenda item of Gwadar Port till next Tuesday to enable the Ministry of Maritime Affairs to provide copies of the ordinances, and both the contracts, of 2006 and 2013, and details of all the subcontractors by Friday (today) to the committee members.
Sarwar on proposed reduction in duties on tariff lines in budget for the next fiscal year stated that a National Tariff Policy Board was set up headed by Minister for Commerce Razak Dawood with members from the FBR National Tariff Commission, and others.
They added that proposal of duty reduction on tariff lines was made by the Tariff Policy Board to be incorporated in the budget for the next fiscal year.
He added that last year, duty was reduced from three percent to zero percent, and now additional custom duty was being reduced in the budget for the next fiscal year, which would have revenue impact of Rs11 billion on the national exchequer.
Member Inland Revenue further stated that POS were being set up at big stores, schools and hospitals as part of automation and to monitor their sales.
The committee rejected a proposal for cut in depreciation allowance for industries, and suggested that original percentage should be maintained.
Sarwar added that to incentivize and propel economic activity in the real estate sector, the bifurcation of plots and constructed property for determining holding period of capital gains was being done away with i.e. the holding period for taxation of capital gains on disposal of immovable property was being restricted to four years from eight years, and the CGT is being halved.
He added that the rates were also being reduced on capital gains emanating from disposal of immoveable property from 15 percent to 7.5 percent, 10 percent to five percent, and five percent to 2.5 percent with 100 percent tax in the first year of sale, 75 percent in the second, 50 percent in the third, and zero percent in the last year.
The committee members, however, raised some serious points with regard to proposed changes in the income tax ordinances for incorporating incentive provided to the construction sector, and wanted that cut off date for completion of the project must be extended as it would be impossible to complete any project in two years time with senators, Musadik Malik and Talha Mehmood, suggesting that the cut off date for small construction projects should be December 31, 2020, and big projects December 2025.
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