ISLAMABAD:
The National Assembly Standing Committee on Finance on Wednesday raised several questions regarding sugar imports and the provision of duty exemptions during its meeting chaired by Syed Naveed Qamar.
The committee also took up various legislative agenda items, including the Parliamentary Budget Office Bill and a proposed tweak to Corporate Social Responsibility law.
Members further questioned officials about a meeting between the government and the business representatives concerning certain budgetary measures.
Addressing the issue of sugar imports, the chair asked for clarification from officials. Federal Board of Revenue (FBR) Chairman Rashid Langrial responded that the Ministry of National Food Security would be in a better position to answer. However, Qamar insisted that the FBR must have played a role.
Langrial explained that the FBR had implemented the federal cabinet’s decision to reduce the 18% sales tax and 20% customs duty on sugar imports. “Reducing taxes and duties on sugar lowers its price in the local market,” he told the committee.
However, the committee chair suggested that the government should withdraw from involvement in the sugar sector, because there was no shortage of the commodity in the country.
Committee member Javed Hanif asked about the International Monetary Funds’ (IMF} position on the sugar import. In response, Federal Finance Secretary Imdad Ullah Bosal said they were negotiating with the lender, adding that the government would have to implement the IMF’s conditionalities.
Later, the chair raised a query about the talks between the government and the businessmen on the issue of their protest. Minister of State for Finance Bilal Azhar Kayani replied that talks were held on Tuesday and a committee has been set up to find solution to the controversial issues within a month.
Meanwhile, a report of the sub-committee on the corporate social responsibility law was presented in the meeting. While reviewing amendments to the law, the committee was told that the Securities and Exchange Commission of Pakistan (SECP) opposed the amendments.
The SECP chairman informed the committee that these amendments would increase operational costs for companies. However, the chair noted that corporate social responsibility could not be left solely to the discretion of the private sector.
The SECP chief said that the issue had come up only for oil and gas firms, but it was being applied to all companies. The finance secretary backed the SECP’s contention, saying that “doing so would increase the companies’ production cost”.
Committee Member Nafisa Shah pointed out that companies were already paying 18% sales tax and super tax, yet the Ministry of Finance appeared to object specifically to social sector spending. She added that while the law requires firms to allocate 1% of their profits to CSR, many were spending beyond that threshold.
Minister of State Kayani suggested that the Finance Ministry and the SECP should bring their proposals after consulting with the companies. Committee Member Mirza Ikhtiar Baig said that all the chambers of commerce and industry and multinational companies were consulted on this law.
The Finance Secretary requested the committee for some more time to consider the matter.
