Work begins on scrapping tax concessions through SROs
Dar says govt will provide protection where required.
Finance Minister Ishaq Dar speaking at the first meeting of a committee, constituted by Prime Minister Nawaz Sharif to review the concessionary regime, at the Ministry of Finance here on Tuesday.
ISLAMABAD:
The government has started work on withdrawing tax concessions offered to different sectors through Statutory Regulatory Orders (SROs) in an attempt to enhance revenue collection.
The matter came up for discussion during the first meeting of a committee, constituted by Prime Minister Nawaz Sharif to review the concessionary regime, at the Ministry of Finance here on Tuesday.
In his remarks, Finance Minister Ishaq Dar asked the committee to review the SROs with an independent and open mind and undertake the exercise keeping in view national interest.
Dar, who is also the convener of the committee, said the constitution of the body comprising representatives of different ministries as well as stakeholders including business persons was aimed at taking all on board and reaching decisions with collective wisdom.
He pointed out that the tax-to-gross domestic product ratio had dropped to 9% from 14.5% in 1998-99, causing a revenue loss of over Rs1,400 billion.
The FBR had been issuing SROs on various occasions to provide concessions in customs duty, income tax and sales tax that benefitted certain stakeholders.
In his budget speech last year, the finance minister had committed to reviewing the entire concessionary regime. In this connection, the Federal Board of Revenue (FBR) has been working to rationalise and streamline the SROs. Its purpose is to remove distortions and disparities.
Dar stressed that the government would provide protection where required and would not put any burden where it was not sustainable or impacted the common man.
He asked the committee to exercise care while deciding the fate of SROs as many charitable institutions and non-profit organisations had been given protection.
He declared that the interest of the domestic industry would be protected in order to shield the job market and maintain its competitiveness. He also hoped that the committee would build on the work already carried out by the FBR and come up with concrete recommendations.
In the meeting, Planning and Development Minister Ahsan Iqbal, Commerce Minister Khurram Dastagir, FBR Chairman Tariq Bajwa, senior officials of the FBR and commerce ministry and representatives of business community were present.
Published in The Express Tribune, January 29th, 2014.
The government has started work on withdrawing tax concessions offered to different sectors through Statutory Regulatory Orders (SROs) in an attempt to enhance revenue collection.
The matter came up for discussion during the first meeting of a committee, constituted by Prime Minister Nawaz Sharif to review the concessionary regime, at the Ministry of Finance here on Tuesday.
In his remarks, Finance Minister Ishaq Dar asked the committee to review the SROs with an independent and open mind and undertake the exercise keeping in view national interest.
Dar, who is also the convener of the committee, said the constitution of the body comprising representatives of different ministries as well as stakeholders including business persons was aimed at taking all on board and reaching decisions with collective wisdom.
He pointed out that the tax-to-gross domestic product ratio had dropped to 9% from 14.5% in 1998-99, causing a revenue loss of over Rs1,400 billion.
The FBR had been issuing SROs on various occasions to provide concessions in customs duty, income tax and sales tax that benefitted certain stakeholders.
In his budget speech last year, the finance minister had committed to reviewing the entire concessionary regime. In this connection, the Federal Board of Revenue (FBR) has been working to rationalise and streamline the SROs. Its purpose is to remove distortions and disparities.
Dar stressed that the government would provide protection where required and would not put any burden where it was not sustainable or impacted the common man.
He asked the committee to exercise care while deciding the fate of SROs as many charitable institutions and non-profit organisations had been given protection.
He declared that the interest of the domestic industry would be protected in order to shield the job market and maintain its competitiveness. He also hoped that the committee would build on the work already carried out by the FBR and come up with concrete recommendations.
In the meeting, Planning and Development Minister Ahsan Iqbal, Commerce Minister Khurram Dastagir, FBR Chairman Tariq Bajwa, senior officials of the FBR and commerce ministry and representatives of business community were present.
Published in The Express Tribune, January 29th, 2014.