Senate Body Rejects FBR Proposal To Impose 17% GST On Gold, Infant Milk

The Senate's Standing Committee on Finance, Revenue and Economic Affairs on Thursday rejected the proposal of Federal Board of Revenue (FBR) regarding imposition of 17 percent sale tax on gold, diamond and their ornament services, and asked for taking measures to check their illegal imports

ISLAMABAD, (UrduPoint / Pakistan Point News - 6th Jan, 2022 ) :The Senate's Standing Committee on Finance, Revenue and Economic Affairs on Thursday rejected the proposal of Federal board of Revenue (FBR) regarding imposition of 17 percent sale tax on gold, diamond and their ornament services, and asked for taking measures to check their illegal imports.

The committee, which met here with Senator Muhammad Talha Mahmood in the chair, also rejected other tax proposals of FBR including levying 17% sales tax on matches industry, sale tax on infant milk, and recommended to impose tax on imported bicycles valuing over Rs 25,000.

It was told that there were about 36,000 jewellers registered with the FBR, 27,394 of them under the sale tax and only 54 under the income tax regime.

The meeting was further informed that the jewellers were already paying tax at the rate of 1.5 percent on gold , diamond 2% and services 3%.

The representatives of match industry informed the committee that they were already paying tax on input and raw material, including potassium chlorate and also on finished goods.

The Senate Committee, while accepting the proposal of local match industry, recommended to the FBR to maintain previous tax regime to promote the local industry.

Senator Kamil Ali Agha stressed the need for providing special incentives for infant formula milk manufacturing companies in order to end child malnutrition.

The committee also approved the proposal of FBR regarding sealing of business premises in case of violation of sub-section (9A) of section 3 and section 40C after proposing to serve notice to such person with the approval of chief Commissioner.

The meeting was attended by senators Farook Ahmed Naek, Saleem Mandviwala, Sherry Rehman, Dr Shahzad Waseem, Mohsin Aziz, Zeeshan Khanzada, Kamil Ali Agha, Musadik Masood Malik, Dilawar Khan, Anwaar Ul Haq Kakar, Syed Faisal Ali Subzwari and Faisal Saleem Rehman.