ISLAMABAD: The National Assembly Standing Committee on Finance on Monday expressed its displeasure at the Federal Board of Revenue (FBR) for failing to implement its budgetary proposals in letter and spirit despite assurances.

The NA committee chairman MNA Faiz Ullah and members were unsatisfied by the FBR’s response and opined that revenue body’s version was not in accordance with the recommendations.

The FBR representatives informed the committee that all proposals for the upcoming budget were sent to the Finance Division for consideration. They further said that the FBR cannot decide anything on its own.

The committee was informed that the government exchequer was facing a shortfall of around Rs186 billion owing to different tax exemptions.

While considering the reply pertaining to regulatory duty on the import of tyres, a committee member invited attention towards a presentation of the Pakistan Tyres Association which highlighted the increase of revenue after reduction of regulatory duty on import of tyres.

The committee once again directed the FBR that its recommendations regarding RD on import of tyres may be reviewed. The regulatory duty on tyre import should be abolished, the NA committee stressed.

The committee also unanimously recommended preparing comprehensive and maintainable suggestions in response to its recommendations. It was also decided that another meeting in this regard will be held in the second week of May.

The committee was also briefed by the FBR Member (Customs-Policy) Javed Ghani on Customs Tariff Reforms (CTR).

Mr Ghani said Customs achieved its revenue targets, with its collections forming 47 per cent of FBR’s total collection during July-March 2018-19.

He added that in recent years, the import-export gap has tremendously increased. However, as a result of recent customs tariff measures, imports have shrunk while exports increased marginally, he added. He also apprised the committee about the yearly CTR and reduction of slabs, and average effective regional Custom Duty rates.

Director General National Tariff Commission ???? briefed the committee about the salient features of National Tariff Policy. She noted that it was proposed that tariff slabs should be simplified and based according to the principle of cascading.

She added that the tariff on raw material, intermediate goods and machinery will be reduced. Difference in the rates of tariff for commercial importers and industrial users of raw materials, intermediate and capital goods will be eliminated to reduce misuse of such differentials and to provide access to such essential materials for SMEs, the DG added.

Published in Dawn, April 30th, 2019