FBR Chairman Says Tax Relief to Industry Creates Revenue Shortfall And Wants Someone to Pay for It

Various industrial sectors presented their budget proposals during a Senate Standing Committee on Finance meeting, chaired by Senator Saleem Mandviwalla. The Pakistan Poultry Association called for the elimination of sales tax on branded chicken and concessions on the 10 different taxes levied on chicken feed. The Dairy Association proposed reducing the sales tax on milk from 18 percent to 5 percent. The Fruit Juices Council suggested decreasing the Federal Excise Duty (FED) on fruit juices from 20 percent to 15 percent. The Association of Builders and Developers (ABAD) demanded the abolishment of the Seven-E law, the elimination of advance income tax on property purchases and tax on plots, and the restoration of a tax system based on covered area. Towel manufacturers proposed the restoration of FBR’s SRO 112 and expressed reservations regarding the 2 percent tax under the normal tax regime. They also suggested providing electricity bill subsidies to SMEs. The Steel Melters Association proposed measures to curb the smuggling of steel scrap and the termination of FBR’s practice of fixing steel prices. Committee Chairman Saleem Mandviwalla assured the association of addressing the steel price-fixing issue with the FBR again. During the meeting, the Chairman Federal Board of Revenue, Rashid Mahmood Langrial remarked on the absence of proposals from the associations on how to compensate for the revenue shortfall resulting from their suggested tax reliefs.