Senators inquire into customised benefits for two companies in Finance Bill.

Byline: Khaleeq Kiani

ISLAMABAD -- A Senate panel on Tuesday opposed certain tax benefits by name to two companies operating in Gwadar through the Finance Bill 2020-21, with some members calling the move A'vulgar', 'ridiculous' and 'shocking'.

'Who are the people behind these companies?' they repeatedly asked. 'How can a company's name be included in the law?'

The Senate Standing Committee on Finance and Revenue led by Senator Farooq Hamid Naek also set the principle under Article 73 of the Constitution that it would not approve any clause to be included in the Finance Bill if it did not pertain to imposition, abolition, remission, alteration of regulation of any tax.

Senator Naek advised the members that the committee should also not allow something to be included in the money bill if it provided for the imposition or alteration of any fine or other pecuniary penalty, or for the demand or payment of a licence fee or a fee or charge for any service rendered or those taxes that fall under the domain of any local government.

The committee members took strong exception to a proposed amendment in the Customs Law (Clause 3-19/i-a) for exemption from custom duties on 'equipments and materials including plant, machinery, appliances and accessories imported by the concession holders, its operating companies 'including Gwadar International Terminals Limited and Gwadar Marine Services and their' contractors and sub-contractors exclusively for construction and operation of terminals and Free Zone area for a period of 40 years.

Under the existing Customs law, the exemption was there but the names of these two companies are specifically proposed for insertion.

Senator Attique Shaikh of MQM and Senator Mohsin Aziz of PTI recalled that a similar clause - without naming these companies - had been brought before the Senate panel and was rejected because it could not allow such an open ended facility to any company. 'It is vulgar to allow a tax facility by name to a company in the law and leave it so open,' said Senator Dr Musadik Malik of PML-N. 'This is shocking,' said Senator Sherry Rehman of PPP.

The senators said it was impossible to restrict the use of such equipment and machinery for specific use at Gwadar. What mechanism is there to ensure a truck imported for Gwadar with duty exemption would not be used in Sahiwal or Hyderabad, questioned Malik. He said the companies and their sub-contractors appeared to be more important than General Ziaul Haq...