The Senate Standing Committee on Finance has approved a proposal to increase sales tax on more than 3,000 items, including packaged food, infant formula milk, sweets, cooking oil, branded shoes and clothing.
The committee stage of the new finance bill reached an important point, though government representatives were noted for their absence. The federal finance minister did not arrive on time, nor did the state minister attend the proceedings. The meeting was halted by Chairman Saeed Ahmed Mandviwala, after which the ministers hurried to the session.
The committee also approved the imposition of standard sales tax on 3,400 commonly used items, along with granting the Federal Board of Revenue powers for re-audit under specific conditions and the introduction of a national faceless tax system. These measures are expected to generate an additional 60 billion rupees in revenue for the Federal Board of Revenue.
Approval was also granted for tax exemptions for Pakistan International Airlines on the import of aircraft, spare parts, leasing arrangements, catering equipment, and fuel trucks. The committee further extended the same exemption facility to all airlines through an amendment.
Separately, the committee approved tax exemptions on the import of bulletproof vehicles for the Shanghai Cooperation Organisation summit. Conditional tax relief was also approved for special vehicles used in counter-terrorism measures, with the Ministry of Interior to determine the number of vehicles allowed.
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