Tax exemption granted to PIA consortium for 15 years, NA body told

The National Assembly’s (NA) Standing Committee on Finance, which met with Syed Naveed Qamar in the chair, was told on Thursday that tax exemption had been granted to the PIA for a period of 15 years under the sales and purchase agreement, reported 24NewsHD TV channel.

Secretary Privatization Usman Bajwa told the committee that several rounds of talks were held with the PIA consortium on the matter.

Speaking on the occasion, Syed Naveed Qamar said that tax relief had been sought for all imported items of the airline. “For how much time the relief has been sought,” he asked, and said it appeared as if an attempt was being made to again establish the monopoly of the national flag carrier.

The secretary replied that the PIA investors had sought tax relief for 15 years, and that it was the government which had to decide whether to give this benefit to the PIA only or to the entire industry.

He went on to say that it was the investors’ point of view that since a large investment was required to resurrect the airline, therefore, the government should give tax exemption.

Disagreeing with Bajwa, the committee chairman opined that this concession should be granted to all airlines.

State Minister for Finance Bilal Azhar Kayani said that if the concession was withdrawn, PIA’s privatization would remain incomplete. “However, on the recommendation of the committee, we can discuss the matter with the IMF,” he added.

Qamar asked the minister to consult the government on this matter and submit his reply.

The NA committee also discussed amendments to the Sales Tax Act.

The FBR officials informed that under the third schedule of the Act, it was binding to mention retail and sales tax on all manufactured goods.

The officials told the committee that small manufacturers received full price, but did not pay the tax.

They said that 450 ghee mills in the country would certainly benefit the consumers.

Reporter: Waqas Azeem