'Fast & Furious 9' aims to jolt US movie-going
Second Covid jab to be administered after six weeks
Army Welfare Trust runs businesses for welfare of retired army personnel
A Senate panel on Tuesday recommended exempting income of the Army Welfare Trust (AWT) from tax, which runs businesses for welfare of retired army personnel, and also rejected an increase in sales tax rate on import of machinery.
The Senate Standing Committee on Finance recommended exempting the income of the AWT on a proposal moved by PTI’s Senator Faisal Saleem. The trust will also not be required to file an annual income tax return. JUI-F Senator Talha Mehmood heads the meeting.
PPP’s Senator Saleem Mandviwalla also backed the proposal to exempt the trust’s income. PTI’s Senator Mohsin Aziz said the Federal Board of Revenue (FBR) should publicize the criteria for exempting charitable and non-profit organizations from levy of the income tax.
The AWT owns public listed companies like Askari General Insurance and Askari Life Assurance. Its non-listed public companies are MAL Pakistan and AWT investments.
Among the private limited companies are Askari Aviation Services, Askari Guards, Askari Enterprises Fauji Security Services and Askari Development and Holding.
The part one of the second schedule exempts incomes of entities and individuals from tax and the committee has recommended including the trust in part one of the second schedule, which has taken it out from the purview of the income tax law.
The government had proposed in the budget to exempt 15 entities from the purview of the income tax law. These include all registered political parties, Islamic Naya Pakistan Certificate Company, Abdul Sattar Edhi Foundation, Indus Hospitals, Privatization Commission of Pakistan, Fauji Foundation, The Securities and Exchange Commission of Pakistan, Sundas Foundation, Ali Zaib Foundation, Audit Oversight Board, Make a Wish Foundation and the Citizens Foundation.
Mandviwalla said the powers to exempt nonprofit organizations from the purview of the income tax should be given to the FBR chairman instead of doing this through amendment in the income tax law.
The standing committee also rejected the budget proposal to increase the sales tax rate on the import of plant and machinery from 10% to 17%. FBR Chairman Asim Ahmed hinted at accepting the committee’s recommendation.
“It is a hardship case and the committee can give recommendations to maintain the sales tax rate at current 10%,” said Ahmed.
Industrialists are in process of importing $2.5 billion worth of plant and machinery for expansion and yet the government proposed in the budget to increase the tax rate, said value-added textile forum chairman Zubair Motiwala.
About Rs58 billion are collected in the fund by charging 0.25% levy and yet the Ministry of Finance gives only Rs600 million per annum for the promotion and marketing of the export related activities, said additional secretary commerce.
The standing committee also recommended maintaining the sales tax rate at 10% for the ginned cotton but the FBR chairman opposed the proposal. The committee was divided over the proposal of reducing the zero-rating facility for the exporters.
“Such highhandedness stops the legislators from giving more powers to the FBR.” Mandviwalla said.
WATCH: PM pays surprise visit to Islamabad market without protocol
FBR under fire for tax notices
Updated Jun 22, 2021
Brace yourself for the shortest night of the year
Updated Jun 21, 2021
Sarah Khan and Falak Shabbir are going to be parents soon!
Updated Jun 21, 2021
PIA allowed to resume flights to Canada
Updated Jun 21, 2021
WATCH: PM pays surprise visit to Islamabad market without protocol
Brace yourself for the shortest night of the year
Updated Jun 21, 2021
FBR under fire for tax notices
Updated Jun 22, 2021
Sarah Khan and Falak Shabbir are going to be parents soon!
Updated Jun 21, 2021
PIA allowed to resume flights to Canada
Updated Jun 21, 2021
BISP removes over 29,900 individuals from list of beneficiaries
NCOC decides to hold board exams across Pakistan this year
Updated May 18, 2021
Couple caught 'kissing' on Airblue flight
Updated May 24, 2021
Banks introduce ATM receipt fee
Updated Feb 10, 2021
CSS exams: frozen in time
Updated Feb 22, 2021
Elahi thanks Zardari for ‘unopposed’ Senate seats
Senate panel opposes exempting parties from income tax
Senate panel seeks lower car prices
Senate panel opposes sales tax at retail stage
US Senate confirms first federal Muslim judge in American history
Govt bags chair of key Senate bodies
At least 10 injured in Lahore's Johar Town explosion
Second Covid jab to be administered after six weeks
Senate panel for exempting AWT from tax
Opposition MPAs continue protest
KPRA shows over 580% growth in cess collection
US and China: co-existence predicament
Comments are moderated and generally will be posted if they are on-topic and not abusive.
Original news : https://tribune.com.pk/story/2306804/senate-panel-for-exempting-awt-from-tax