During a recent Senate Standing Committee on Finance meeting, Senator Mohsin Aziz inquired about the total amount collected by July 2024 through a Rs 1 fee per POS invoice and its subsequent utilization.

The FBR clarified that this revenue, approved by the former Finance Minister, is earmarked for various purposes, including funding monthly price schemes for customers at Tier-I retailers, enhancing the technical and logistical capabilities of POS teams, media campaigns, and employee welfare for the IRS.

The committee also discussed the legal framework for provincial taxes on exports. It was confirmed that provinces can impose an Infrastructure Development Cess on goods transport for imports and exports, although such taxes are typically not applied to exports to encourage trade.

Concerns were raised regarding a proposed 2% Infrastructure Development Cess in Khyber Pakhtunkhwa, which could negatively impact exports, particularly given its border with Afghanistan. Currently, Pakistan Customs does not collect this cess; banks manage it on behalf of the provincial government. The Ministry of Finance will form a committee to address these issues.

Read more

FBR earns millions by collecting one rupee on each Point-of-Sale fee

FBR exceeds tax collection targets

FBR proposes 1% increase in withholding tax rates effective October 1

Additionally, agenda items included a concern raised by Senator Manzoor Ahmad regarding a 10% levy on transport and business operations between Pakistan and Iran. It was noted that Iranian authorities deduct this fee from Pakistani vehicles transporting cargo, while Iranian vehicles face no such charges, creating a disparity in treatment. This issue remains unresolved pending Senator Ahmad’s participation in future discussions.