Senate body rejects 17 percent sales tax on gold jewellery

Author: Web Desk

ISLAMABAD: The Senate Standing Committee on Finance on Tuesday voted against imposing a 17 percent sales tax on gold jewellery.

According to reports, the jewellery association raised the issue with the standing committee on finance, claiming that putting a 17 percent tax on gold jewellery products is improper.

“This committee fully endorses the suggestion and will forward it to Head FBR for approval,” the Senate body’s chairman stated.

During the conference, it was revealed that the jewellers’ group was in favour of a 17 percent sales tax on jewelry processing.

On Friday, June 18, the Senate’s Finance Committee expressed concerns about a tax exemption for political parties and the implementation of a tax on charitable transactions in the Budget for 2021-22.

The FBR officials told the gathering on Friday that a prior exception for charity institutions in the transfer of money had been abolished in the current budget.

The tax will be paid by individuals who donate the charitable amount, according to FBR authorities. The Senate, on the other hand, opposed the introduction of a tax on charitable contributions.

Furthermore, the committee also raised questions on exempting funding to political parties from taxation and rejected the proposal made in the budget, currently in discussion at the Parliament.

Senator Saleem Mandviwalla asked the FBR officials if political parties have asked for exemption in the transfer of funds to them. “We are being asked repeatedly by callers if political parties have sought exemption in this regard,” he said.

The Senate body directed the authorities to take out political parties from the exemption schedule as Saleem Mandviwalla said that no political party submits tax returns.