PR No.137 Meeting Reviews Withdrawal Of Concessionary SROs Islamabad: March 16, 2016

A meeting of the high powered committee constituted to review the concessionary regime (SROs) was held here at the FBR on Wednesday. The Committee reviewed the draft plan for withdrawal of concessionary SROs/exemptions in the fiscal year 2016-17. Federal Minister for Finance, Senator Mohammad Ishaq Dar chaired the meeting.

Federal Minister for Planning, Development & Reforms, Ahsan Iqbal, Special Assistant to Prime Minister on revenue, Haroon Akhtar Khan, Chairman BoI, Miftah Ismail, senior officials from the Ministries of Finance, Textile Industry, Commerce, Industries, P&NR, FBR and representatives of various Chambers of Commerce and Industry were present.

The Chairman FBR, Nisar Mohammad Khan briefed the meeting about the concessionary SROs to be withdrawn in under the heads of Customs, Sales Tax, Income Tax and Federal Excise Duty.

In fiscal year 2014-15 Rs. 105 billion worth of SROs and exemptions were withdrawn while in 2015-16 this amount stands at Rs. 120 billion.

The Finance Minister appreciated the concerted efforts of the FBR in undertaking the phasing out plan of the concessionary regime. He said the present government under the leadership of Prime Minister Nawaz Sharif has undertaken a series of reforms to achieve macro-economic stability and now wishes to consolidate the gains its has made. Promotion of tax culture and elimination of concessions/exemptions for the privileged class aim at strengthening the national economy. He said that in the coming fiscal year the phasing out programme of concessionary SROs/exemptions would Inshallah be completed. He urged the FBR to take all possible measures to ensure that this milestone is achieved. He also emphasised efforts for achieving the revenue targets set for the current fiscal year.

It may be added that Prime Minister Muhammad Nawaz Sharif in December 2013 had approved phasing out of concessionary regime in the country which included withdrawal of discriminatory concessionary SROs and exemptions. A high powered committee was constituted to review the concessionary regime/SROs and make its recommendations for phasing out and withdrawal of the same.