NA body resumes deliberations on taxation of zero-rated sectors, RGST
The Sub-Committee of the National Assembly’s Standing Committee on Finance and Revenue met here with Ms. Shahnaz Wazir Ali, MNA and Special Advisor to the Prime Minister, in the chair to discuss a host of issues related to taxation of zero rated sectors and RGST.
The meeting held at the FBR House was the second in a week and attended by MNA Ms. Kashmala Tariq, MNA Mr. Shahid Khaqan Abbassi and MNA Mr. Rashid Godil as well as Chairman APTMA, APTPMA, PRGMBA, Surgical Association, PAKSEA and other representatives of leather, carpets, textile, surgical goods and sports goods associations. Chairman FBR Mr. Sohail Ahmad and other senior FBR officials were also present.
Several issues relating to the five zero-rated sectors (textile, leather, carpets, surgical goods and sports) and RGST were discussed extensively. The associations presented their point of view and requested that zero-rating be continued under the existing sales tax regime since removing zero-rating would lead to liquidity issues for these sectors as the refund system/mechanism was not efficient enough. They requested that the intermediary stages not be taxed and some other mechanism may be devised to collect taxes on the domestic sales of these sectors preferably at the retail stage.
The Sub-committee appreciated the concerns of the Textile associations and the need to facilitate the sector since it represented a major share of Pakistan’s exports and decided to consult the retailers and wholesalers before reporting to the National Assembly’s Standing Committee on Finance and Revenue. It was also taken into consideration that consultations with representatives of other zero rated sectors will also be held.
Hamid Raza Wattoo
Dec 11, 2010