Opp Parties Welcome To Participate In Formulation Of Economic Policies: Kamoka

FAISALABAD, (UrduPoint / Pakistan Point News - 5th Jun, 2021 ) :NA Standing Committee for Finance and Economic Affairs Chairman Faizullah Kamoka has said that the Pakistan Tehreek-e-Insaf (PTI) government has offered the opposition parties an opportunity to ensure their active participation in formulation of new economic policies with consensus.

Addressing the business community at Faisalabad Chamber of Commerce & Industry (FCCI), he said that the government as well as people have braved a bad time during the last two years; however, now the economic situation has improved.

He said the National Database and Registration Authority (Nadra) was extending full support and providing required information to the Federal board of Revenue (FBR) for expanding the tax net. He said the role of small and medium enterprises (SMEs) was crucial to expedite overall economic growth and help alleviate poverty in the country. With the economic improvement, the government has decided to enhance allocation for the Public Sector Development Programme (PSDP) from Rs 650 billion to Rs 900 billion.

"Under the long-term strategy, the government will allocate sufficient funds for construction of ten dams," he added. About weekly holidays of Saturday and Sunday, he said he would personally take up the issue with NCOC as the positivity rate of corona is now below 2% in Faisalabad.

Dr Muhammad Ashfaq Ahmad, Member Inland Revenue (Operations), said that despite some minor system-related discrepancies, the FBR has paid unprecedented refund claims to the tune of Rs 250 billion during this year. He said that every patriotic citizen has to file his tax returns in order to disassociate himself from the tax evaders, and the FBR would extend maximum facilities to the responsible taxpayers.

Regarding issuance of notices to the Information Technology (IT) sector, he clarified that it was the constitutional and legal responsibility of the tax collectors to ask about the taxable money and it should not be dubbed as harassment. He said that the IT export was exempted, but at the same time, the exporters were bound to file declaration and upon declaration, they could enjoy the exemption.

Quoting the American IT giant, Standards & Poors, he said that its global business was around $40 billion, but it did not send even a single penny to Pakistan excluding the staff salaries. He said that we want to regulate this sector so that the IT companies, that are earning hefty profits, could bring back foreign proceeds to Pakistan.

Dr Ashfaq expressed satisfaction over 18% extra revenue collection and said that it would help the government dole out better facilities to people.

About the smuggling issue, Dr Ashfaq said that all departments concerned were carrying out excellent work to curb the menace. He said that smuggling through Iran and Afghanistan borders had been eliminated; however the real issue confronted by the FBR was declaration of miss-invoicing. "Four hundred items are declared in an incoming container, whereas it have been carrying more than 4,000 items," he said and added we could control the issue only through 100% inspection of the containers for which we need more financial resources.

About the electronic manufacturing sector, he said that it is a Rs.2.5 trillion market where tax evasion is rampant. "This sector is on the FBR radar and we are conducting a consolidated audit of all electronic manufacturers." About the hotel industry, he said that it had to be linked with the FBR system for immediate realisation of sales tax, but there are some provincial hitches. "We are establishing a maximum "Point of Sale" within Islamabad, but due to the reservations of provinces, it could not be fully implemented throughout the country," he added.

He said Prime Minister Imran Khan intends to introduce a track and trace system from July 1, 2021 and the Attorney General was trying to get a stay order vacated in this connection. He said that if the stay order was vacated it would be immediately enforced in 4-5 major sectors of the economy and we are expecting to generate additional revenue of Rs 200-300 billion from this head.

Engineer Hafiz Ihtasham Javed, President FCCI, welcomed the guests on behalf of the business community of Faisalabad.