Federal Finance Minister Ishaq Dar on Saturday said that income support levy at the rate of 0.5 percent under the Income Support Levy Act 2013 is applicable only on individuals but not on companies and corporate sector.
Senator Ishaq Dar said this during his visit to the Federation of Pakistan Chambers of Commerce and Industry head office and removed the misperception of a large number of businessmen who attended the meeting.
He also informed the house that the access to bank data by FBR under section 165-A will only be allowed to the FBR chairman and members (BPS 21 and 22) and a notification will be issued soon in this respect to remove the inhibitions of the business community. Any misuse of this information would be heavily penalized, he added.
He said this provision was only meant for the new assessees who travel abroad frequently in first class and whose children study in expensive schools but do not pay taxes. He said 10,000 notices had been issued to the potential taxpayers with a view to broaden the tax base. This shall not be applicable to the existing assesses, he remarked.
Earlier, FPCCI President Zubair Ahmed Malik welcomed the finance minister and appreciated the government’s resolve to find solutions to the energy crisis (including the circular debt) and the ballooning fiscal deficit. He also pointed out some harsh irritants in the budget which were serving as a roadblock to business activity.
FPCCI former president Tariq Sayeed stressed the need for frequent interaction between the business community and the government. He lamented the delay in payment of longstanding sales refund claims, and emphasised their early payment as it creates cash flow problems for the exporters. The finance minister said there was a backlog of two years on refunds, but he assured the businessmen that he would examine this issue carefully.
SM Muneer, FPCCI former president, said that the tanner manufacturers exporters might be exempted from the applicability of SRO 505(I)/2013 which makes them withholding agents to collect 17 percent sales tax from unregistered persons.
He also proposed exempting the supply of raw hides and skins for leather industry from sales tax as under SRO 505(I)/2013, they were required to withhold sales tax at applicable rates from taxable purchases made from unregistered persons.
In response to FPCCI Budget Working Group Chairman Zakaria Usman’s suggestion that minimum tax be reduced from 1 percent to 0.5 percent, the finance minister said it would not be applicable in case of gross loss. Regarding the time period of four months allowed for shipment of plant and machinery, Senator Dar agreed to extend it to one year.
After an exhaustive discussion, it was announced by the finance minister that a committee comprising of representatives of FBR and FPCCI would be formed to take up all outstanding matters which were impeding business activity. The business leaders were generally very happy with the positive approach of the finance minister and his team which included the governor SBP, secretary finance, chairman FBR and other senior officers of the FBR.
Meanwhile, talking to media persons after visit to Karachi Stock Exchange, the finance minister said steps taken by the government regarding economy had a very positive impact on the stock exchange. Earlier‚ the finance minister had a meeting with the top management of the KSE.
