NA panel summons FBR chief to resolve tax refund issue

PM aide reveals meeting with EU on GSP Plus status delayed

ISLAMABAD: The National Assembly Standing Committee on Commerce and Textile has called Federal Board of Revenue (FBR) Chairman Shabbar Zaidi to its next meeting for a swift resolution of the issues pertaining to the stuck sales tax refund claims of textile exporters.

The committee met at the Parliament House on Friday with Naveed Qamar in the chair.

Adviser to Prime Minister on Commerce and Industries Abdul Razak Dawood informed the committee that the textile secretary would be appointed soon.

Tax revenue shortfall widens to Rs218b

Talking about the GSP Plus status, Dawood highlighted that Pakistan had a meeting scheduled with the European Union in December to discuss the trade facility. "However, the EU asked us not to visit in December as its house was not in order," he revealed. "We have been asked to visit the bloc when its house is in order."

He added that he would meet the ministers concerned during his visit to Germany, France and Sweden. A parliamentary delegation will visit the bloc after Dawood returns from his trip.

The adviser apprised the NA panel that reservations about the renewal of Pakistan's GSP Plus status had been largely addressed. "The two biggest issues we face are related to labour laws in the Special Economic Zones and inspection practices for labour units," he said.

Dawood was of the view that H-forms for tax refunds were very comprehensive and were difficult to fill. "The entire system will be streamlined if everyone fills this form," he said, adding that he had asked the FBR to simplify the form in a bid to promote business activities in the country. The adviser told the committee that cotton shortfall for the year was estimated at seven million bales. "Cotton production in 2019 is estimated at eight million bales against annual consumption of nearly 15 million bales."

The country's cotton production was on the decline year after year, he said, blaming the use of substandard pesticides on the crop and the seed crisis.

Speaking during the meeting, Commerce Secretary Sardar Ahmad Nawaz Sukhera told the committee that the EU appreciated Pakistan's actions.

FBR chief softens stance on new revenue authority

On the other hand, committee member Khurram Shehzad expressed fear that the entire textile industry would collapse if tax refunds were not released. "Their method for payment of tax refunds is not fixed," he pointed out. Committee Chairman Naveed Qamar said the Ministry of Finance had been made aware that it had a poor refund system.

The standing committee directed the FBR chairman to attend the next meeting for a briefing on the tax refund data.

Committee member Tahira Aurangzeb voiced concern that the government had slapped ban on the import of sugar-free juices, biscuits and porridge used by diabetic patients. Endorsing the view, the chairman maintained that diabetic patients were facing problems due to the ban. Dawood assured them that the issue would be resolved after review.

Published in The Express Tribune, November 30^th, 2019.

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