ISLAMABAD: Opposition Leader in the National Assembly, PTI leader Omar Ayub Khan, Thursday raised the issue of smuggling of petroleum products from Iran in the meeting of the National Assembly’s Standing Committee on Finance.
The PTI leader said the smuggling of petroleum products was causing a revenue loss of Rs500 to Rs550 billion to the national exchequer. He said the smuggling could not occur without the nexus of intelligence agencies and customs intelligence and proposed that drone technology be utilized to ensure surveillance on known routes at the porous borders.
Representatives of the refineries briefed the committee that their input was taxed, but on output, there was no GST, causing problems over the last several years. Without resolving this issue, they would not be able to invest $6 billion.
Chairman Federal Board of Revenue (FBR) Rashid Mahmoud Langrial said the refineries business came out of the ambit of Value Added Tax (VAT) when there was no tax on their output. He said proposals were under consideration to slap GST on their output or provide them with some kind of other permanent solutions.
The beverage industry informed the committee that their volume and tax contribution had reduced with increased taxation. Ms Atika Mir, representing the juice and beverages industry, proposed reduction in the FED rate from 20 to 15 percent. Langrial said if the industry could give a post-dated bank cheque for increased tax collection from their sector, then the FBR might consider a reduction in the tax rates.
The parliamentarians inquired whether the government was going to impose tax on the imported solar panels, the FBR chairman replied that the government was reviewing to withdraw tax exemptions on different products in the upcoming budget.
Meanwhile, the government Thursday announced that there was no change in the schedule of the upcoming budget, and it will be announced on June 10.
After the National Assembly’s Standing Committee on Finance proceedings were over, journalists asked Federal Finance Secretary Imdad Ullah Bosal about further extension in the budget presentation from June 10 to 12, he firmly stated that the budget would be announced on June 10.
When asked about the holding of the National Economic Council (NEC) for approving the macroeconomic framework and development outlay as well as unveiling the Economic Survey for 2024-25 on the same date of June 9, 2025, he replied that the NEC might be rescheduled, but he could not say it with authority. However, the budget will be announced on June 10.
To another query about the postponement of ADB’s Board from May 28 to June 3, he said it would be held on June 3 to consider the approval of guarantees and loans.
Later, Finance Minister’s Advisor Khurram Shahzad in his X post stated that as communicated earlier, the upcoming federal budget is on schedule to be announced on June 10, 2025. Similarly, the upcoming Pakistan Economic Survey FY25 is scheduled to be announced on June 9.
Meanwhile, the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, Thursday approved the Income Tax (Second Amendment) Bill 2025.
The committee focused on the withdrawal of tax exemptions for salaried individuals, particularly teachers whose salaries faced significant deductions. Senator Mohsin Aziz suggested expediting the refund or adjustment process. Mandviwalla directed the FBR to submit a detailed report identifying the affected teachers and the status of their refunds, emphasizing that failure to return deducted amounts undermined the law.
The FBR chairman assured compliance and supported the committee’s recommendations. The committee also reviewed budgetary allocations and utilization under the Public Sector Development Programme (PSDP) for FY2024 25.
While the Planning Commission raised concerns over the lapsed project budgets, the finance ministry officials clarified that no funds had lapsed and over 50 percent of authorized funds had already been disbursed.
During discussions on the proposed barter trade mechanism between Pakistan and Iran, Senator Mandviwalla inquired about the absence of a formal net-off settlement mechanism and urged the departments concerned to develop a clear procedure. The committee emphasized relaxing existing restrictions and expanding the list of tradable items. Mandviwalla asked the stakeholders to submit proposals for new items and directed the authorities to resolve operational issues such as limited customs hours and storage space at NLC terminals in Quetta. He also recommended forming a local committee in Quetta to address traders concerns on the ground.
