Nawaz approves end of hundreds of SROs

ISLAMABAD: Prime Minister Nawaz Sharif has approved withdrawal of hundreds of concessions given through SROs to net Rs 230-240 billion in the national kitty in the new budget.

“Yes the PM has approved 90 to 95 percent of proposals finalised by Finance Ministry and FBR during the budget-making process on the subject of withdrawal of SROs and exemptions through the coming Finance Bill, 2014-15 on Friday evening,” official sources who participated in high-level meeting confided to The News here on Friday night.

The PM, according to these sources, has directed the authorities to protect the poor and middle classes from the increasing tax burden and to ensure that the prices of essential items do not go up.

On the issue of surrendering the powers of SROs to Parliament, the sources said that it is up to the government to take a decision on this subject. “The FBR has shown its willingness to surrender this power to Parliament,” added the sources.

There are certain free trade agreements, preferential trade agreements and avoidance of double taxation agreements with other countries so these SROs would be protected. The government has decided to withdraw those SROs which are individual or company-specific in their nature. In case of huge involvement of tax revenues, the FBR will bring those sectors into normal tariff regime after withdrawal of SROs.

“We have committed to the IMF to withdraw SROs and abolish tax exemptions in the next three years so in the upcoming budget only first phase will be made part of the Finance Bill,” added the official.