ISLAMABAD: The Senate Finance and Revenue Committee yesterday met under the Chairmanship of Senator Saleem Mandiwalla to consider and finalize the recommendations on the Money Bill, the Tax Laws (Second amendment) Bill, 2022 laid in the house on 15 the December here at the Parliament House. The committee unanimously rejected the amendment to empower the Federal Government to bring about new schemes and modification in taxes, other than through the Money Bill.

The committee maintained that any modification required should be through legislation having representative from the public. Similarly the committee also rejected the 390 rs tax per kilogram on un manufactured tobacco, however accepted the amendment of the increased rate of FED per thousand Cigarettes by 6,500 and 2050 rs.

According to the Sales TAX 1990 the fix sales tax policy has been restored to previous practice of tax charges from retailers, other than those falling in tier-1 , through their monthly electricity bills, at the rate of five percent where the monthly bill amount does not exceed rupees twenty thousand and at the rate of seven and half percent where the monthly bill amount exceeds the aforesaid amount. The committee unanimously endorsed the amended and remarked that it was also recommended previously but was not put in exercise.

In the special provision relating to payment of tax through electricity connections where the federal government or the board with the approval of the Minister in charge pursuant to the approval of the Economic Coordination Committee of the Cabinet may issue an income tax general order, the powers of the FBR have been withheld as recommended by the committee. Similarly the committee rejected the amendment that any income derived by Kuwait Foreign Trading Contracting and investment Company or Kuwait Investment Authority being dividend of the Pak Kuwait Investment Company in Pakistan, stating that this is disparity and if amendment is to  be applied should be applied to all foreign companies.

Published in The Daily National Courier, December, 23 2022

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