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Event Title: Senate Standing Committee on Finance, revenue and economic affairs chaired by Senator Talha Mahmood

Event Date: 2021-07-14

A meeting of the Senate Standing Committee on Finance, revenue and economic affairs was held on Wednesday at Parliament House. The meeting was chaired by Senator Talha Mahmood. Besides committee members, officials of  FBR ( Federal Board of Revenue ) and SECP (Security and Exchange Commission of Pakistan ) also participated in the committee’s meeting.  “ The Tax Laws Amendment Bill 2021” and “The Companies  Amendment Bill, 2021” were reviewed in the meeting.  Consideration of “The Corporate Restructuring Companies Amendment Bill, 2021 was recessed till the next meeting.

The Chief Tax Officer FBR briefed the committee on the Tax Laws Amendment Bill, 2021 for the new financial year.  Expressing displeasure over the non-presence of the Chairman FBR at the meeting, the Chairman committee summoned the Chairman FBR in the next meeting of the Committee.  Chairman of the committee, Senator Talha Mahmood sought details of the "Tax Laws Amendment Bill, 2021" from the FBR. The officials from FBR told the committee that the Tax Law Ordinance has been made part of the Finance Bill 2021. The chairman of the committee said that “no bill can be wiped blindly”. Senator Saleem Mandviwala asked, “which recommendations of the committee have been rejected in the finance bill”?  The committee sought a briefing from the FBR at its next meeting on the senators' recommendations regarding the Finance Bill 2021.

The committee also received a section-wise briefing from SECP on  “The Companies Amendment Bill, 2021”. The Executive Director; Security and Exchange Commission of Pakistan (SECP) gave a detailed briefing to the committee on “The Companies Amendment Bill 2021”.  The Chairman committee along with the committee members expressed dissatisfaction with the words in the section on "Effects of Memorandum and Articles".  The chairman of the committee recommended correcting the wordings of the particular section.  While giving a briefing, the Executive Director SECP underlined that the voting power of the members in the company has been reduced from 10% to 5% for bringing a resolution.  The condition of revealing the name of Father/Husband is being removed in the amended bill, he added.

SECP officials underscored that a company with a capital of Rs 1 million is proposed to be exempted from unaudited financial statements while the committee has recommended exemption from filing of a company with a capital of up to Rs 3 million.  In the amendment bill, the number of 56 forms is being limited to 26 forms. Chairman SECP said that the company with 1 billion turnovers will be included in the startup while concession and privileges will also be provided to a company having a turnover of 1 billion. The Chairman Committee and the Committee Members Objected to some sections of the Companies Amendment Bill,2021 and directed the SECP officials to reappear at the next meeting with the amended bill while the discussion on “The Corporate Restructuring Companies Amendment Bill, 2021 was put off till the next meeting.

Addressing the Chairman SECP, the Chairman of the Committee reiterate providing whatever assistance is required for the refinement of the institution.

The committee was attended by Senator Sherry  Rehman, Senator Saleem Mandviwala, Senator Kamil Ali Agha, Senator Faisal Subzwari, Senator Saadia Abbasi.  FBR officials, Chairman SECP, Executive Directors SECP, Director State Bank of Pakistan also participated in the meeting.