ISLAMABAD: The Senate Standing Committee on Finance on Monday recommended to the government withdrawal of duty and taxes on those goods which will further push up inflation.

The meeting chaired by Senator Talha Mahmood also noted with concern that the Federal Board of Revenue (FBR) had issued notices to 1,500 businessmen demanding undue taxes.

The committee sought details of these notices by July 15. Business community heaps complaints against the FBR, Mr Mahmood said and added that he will not accept this attitude of the FBR.

Senator Sherry Rehman demanded withdrawal of Rs20 per litre petroleum levy on petroleum products. She further said tax on flour mills industry may cost additional Rs97 on per 20kg bag of flour. The committee unanimously recommended withdrawal of these taxes.

Board of Investment Secretary Fareena Mazhar briefed the committee about the incentives offered in special economic zones (SEZs). She said plant and machinery can be imported duty-free in SEZs. However, import of raw materials and machinery can be made duty-free in Special Technology Zones (STZs).

Senator Saleem Mandviwalla demanded provision of these facilities in SEZs as well.

On resignation of the BoI chairman, Ms Fareena said that he has resigned on personal grounds. The resignation will be approved by the cabinet, she added.

This will be the third BoI chairman who resigned under the PTI government.

Senator Kauda Babar proposed to increase excise duty by Rs25 per pack of Tier-1 cigarettes, Rs15 on Tier-2 cigarette pack. This will increase an additional FED of Rs50bn for the government exchequer.Senator Sadia Abbasi proposed reduction of duties and taxes on cosmetics. However, Senator Shibli Faraz said instead of reducing duties on cosmetics, local industry should be promoted.

Published in Dawn, June 22nd, 2021