Islamabad: The Senate Standing Committee on Finance has told the Federal Board of Revenue (FBR) that the Finance Bill 2022-23 empowers the bureaucracy to formulate a zero-taxation regime for the business community.
The Senate Standing Committee on Finance met on Thursday under the chairmanship of Senator Saleem Mandviwalla. It was given a briefing on the inclusion of budget recommendations of the Senate in the budget 2023-24.
The committee observed that the Finance Bill 2022-23 empowers the bureaucracy to formulate a zero-taxation regime.
The committee was briefed by a senior official of the FBR that separate rules would be prescribed for the said purpose.
The committee was informed that the provision would come into play where any case, based on risk profiling, is selected for transfer of pricing audit.
The committee maintained that any rules prescribed must be transparent and the more significant public interest rather than self-seeking benefits.
The committee noted that the Finance Bill has extended income tax exemption expiring on June 30, 2023, to June 30, 2024, for residents of erstwhile Fata/Pata, which the committee rejected.
The committee was told that the government has decided to extend the exemption for one year to develop the area and ensure the employment of the local people.
