ISLAMABAD: The new tax audit policy, which shifts from random balloting to risk parameters, will promote compliance with existing tax laws and generate increased revenues through better declarations, FBR Member Taxpayers Audit Rana Seerat said on Friday.
Briefing the Senate Standing Committee on Finance chaired by Saleem Mandviwalla, Ms Seerat explained a total of 1.2 million income taxpayers were initially selected for the audit under risk parameters. Of these, 0.7 million did not fall under the risk category. Of the remaining 500,000, only 93,276 were selected for the audit.
The committee members sought details of the new audit policy – including taxpayers’ info, balloting time, etc – but the Member FBR refused to share the information.
Ms Seerat stressed that these details were declared confidential through an amendment in Finance Bill 2013.
This irked the committee members, with Mr Mandviwalla remarking that the finance committee would strike down the amendment in next fiscal year’s finance bill.
PPP Bill deferred: The Senate committee deferred the Public-Private Partnership Bill to establish a regulatory body for undertaking infrastructure projects after some members argued the law was unnecessary.
Senior finance ministry officials said that in coming years, government financing for infrastructure projects would be inadequate and projects would be undertaken in joint ventures with the private sector.
The proposed law would provide a regulatory framework for infrastructure projects under public-private partnership (PPP).
Local auto industry suffering: The committee members said import of parts in the form of raw material has been detrimental for the local industry.
If this practice continues, there is no chance of development of local industry in the next 50 years, the committee noted.
The FBR said that import of old and used auto parts (including serviceable auto parts imported as steel scrap) is banned in terms of IPO, 2016. However, the same can be redeemed against a fine of 20 per cent on import value.
However, chassis of used automotive vehicles cut into pieces – whether or not designed as steel scrap – are also banned for import into the country.
The tax official claimed that in order to obviate chances of misdeclaration in the import of used auto parts, a comprehensive special procedure for examination of such goods has been prescribed. All consignments of old and used auto parts are subjected to 100pc examination, the tax official added.
The Senate committee and FBR officials agreed that redemption fine on old and used parts being imported in the form of scrap should be increased sufficiently to the level of the rates imposed on brand new vehicles or else imported stuff should be confiscated.
Published in Dawn, January 28th, 2017
