TANVEER AHMED

KARACHI: The Chinese authorities are not willing to share the data of trade with Pakistan, compelling the government to introduce taxation at the import stage to curb under-invoicing, Federal Finance Minister Miftah Ismail stated here on Saturday.

Speaking to businessmen at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) brand of the year award ceremony, the minister said certain measures proposed in the Finance Bill 2018 were regulatory measures only; and “these do not aimed at generating revenue.”

He said under-invoicing of imported goods was a major issue and the proposal to convert income tax at import stage as minimum tax was aimed at curbing under-invoicing.

“Gross under-invoicing has been reported on imports from China and Chinese authorities are not willing to share export data of Pakistan with us, therefore these measures have been proposed. However, we will revisit these when business community leaders demand ‘full and final’ settlement of tax at import stage,” he said.

He also announced that the government has decided to resolve sales tax refund issue before the exit of present government and said that he would try his level best to refund the amount. About NTN condition for purchasing vehicles and plots of land, the minister declared that the government would not reverse this measure and enforce it vigorously. According to him, this measure needs to be complied with to broaden the tax net.

He announced that National Assembly would pass the Finance Bill 2018 in the beginning of next week and said that relief measures proposed in the budget for business community would give a boost to national economy.

Responding to queries of businessmen, who informed the minister about their concerns as well as the issues confronting the business community, Miftah described the tax amnesty scheme as a well-planned scheme, which would help whiten the black money.

About the future of tax amnesty scheme, the minister said Chief Justice of Pakistan had formed a committee to examine various aspects of this scheme. However, he declined to speculate on the likely or possible decision of the apex court in this regard. He said the scheme has thrown up an opportunity for people to whiten black money, which would help generate a large sum of revenue to cause a healthy impact on the economy.

About business community’s demand that the government should give more exemptions under this scheme, Miftah ruled out more concessions as the government is bound to comply with the international as well as national laws. In the past, he added, certain banks faced imposition of penalties due to various reasons.

About the measures proposed in the Finance Bill 2018 for the next financial year, Miftah said that these regulatory measures were aimed at showing greater compliance with the taxation regime than generating revenue.

The Finance Minister said that the policies of the present government improved the health of national economy, which gave it the space to provide incentives to the business community.

Later, FPCCI awarded around 100 companies in recognition of their outstanding services. The ceremony was organised by the FPCCI with an objective to creating awareness among companies about the importance, significance and benefits of conducting business under brands to help boost country’s exports.