ISLAMABAD: The Senate’s Standing Committee on Finance on Thursday came down hard upon the government for its imposition of massive regulatory duty on over 731 import items and for not providing details on Eurobonds and Panama leaks.
The committee also recommended issuing a warning to the heads of the private banks over non-provision of the information regarding the Eurobond. Senator Mohsin Aziz pointed out that arrest warrants could be issued for a person who did not appear before or provide information to the committee. Another senator said that they had information about the government stopping the banks from providing the committee the required information. “One thing we had been asking for a year and a half now, and no reason is understandable that why it is not being furnished to the committee,” said Committee Chairman Saleem Mandviwala. He also expressed displeasure over, what he said, the attorney general was briefing the committee on Panama leaks.
Later on, the committee held detailed discussion on the imposition of duty. Some members termed it unconstitutional and undermining of the supremacy of the parliament. Senator Kamil Ali Agha even called it as robbing the masses of their rights. The government informed the committee that it was to lessen the trade gap and encourage local industry.
The regulatory duty imposition had reduced tyre imports, alone, by nine billion, said the Commerce secretary while explaining the rational and purpose of imposing the regulatory duty on what he said mostly were in luxury category.
The Federal Board of Revenue chairman brushed aside apprehensions raised by the Tyre Dealers Association by saying that the increased prices were to be paid by the customers having hardly any impact of the sellers’ business. Representatives of the tyres association informed the committee that Pakistan imported tyres of over Rs 36 billion every year. “The figure was rising rapidly in the event of construction of highways and motorways. Only 20 per cent demand for tyres were met through local manufacturing. The recent 80 per returned,” he said.
The officials informed the committee that sudden increase in the imported tyres would rather encourage smuggling. They presented an estimate to the committee that 40 per cent of the demand for tyres was smuggled into Pakistan. The committee deferred the matter until hearing the point of view of the local manufacturers and other stakeholders to decide.
The committee also recommended do away with the ten per cent and 21 per cent regulatory duty imposed on gas-fueled generators and generators of 1250 KV used by the textile mills. The committee made its recommendation after listening in depth to the All Pakistan Textile Mills Association (APTMA). The association maintained that the increase in duty on the imported generators would increase the production costs of the textile mills.
Published in Daily Times, November 10th 2017.