Senate body opposes 17pc sales tax on gold jewelry

ISLAMABAD: Standing Committee of the Senate on Finance Tuesday opposed the imposition of a 17 percent sales tax on gold jewelry, ARY NEWS reported.

According to details, the matter was taken up with the standing committee on finance by the jewelry association, who said that imposing a 17 percent tax on gold jewelry items is inappropriate.

“This committee completely supports the recommendation and will send it for approval to the chairman FBR,” the chairman of the Senate body said.

It emerged during the meeting that the jewelers association have supported the idea of a 17 percent sales tax on the processing of jewelry.

On June 18, Senate’s standing committee on Finance Friday raised questions over tax exemption to political parties and imposition of a tax on charity transactions in the Budget for 2021-22.

Briefing the meeting on Friday, the FBR officials said that an exemption previously given to charitable institutions in the transfer of funds to them has been lifted in the current budget.

“The tax will be paid by those giving the charity amount,” the FBR officials said. The Senate body, however, rejected the imposition of tax on charity amounts.

Furthermore, the committee also raised questions on exempting funding to political parties from taxation and rejected the proposal made in the budget, currently in discussion at the Parliament.

Senator Saleem Mandviwalla asked the FBR officials if political parties have asked for exemption in the transfer of funds to them. “We are being asked repeatedly by callers if political parties have sought exemption in this regard,” he said.

The Senate body directed the authorities to take out political parties from the exemption schedule as Saleem Mandviwalla said that no political party submits tax returns.