The National Assembly Standing Committee on National Food Security and Research has directed the Federal Board of Revenue (FBR) to seek input from the International Monetary Fund (IMF) if current tax policies fail to generate sufficient revenue and continue to negatively impact the cotton sector.
During a recent meeting, the committee instructed the Ministry of National Food Security and Research to hold consultations with stakeholders, including the Ministry of Law and Justice, and report back on recommendations aimed at addressing agricultural sector challenges.
The ministry has also been directed to formally request a legal review of the Pakistan Animal Science Council Bill, 2024, clarifying whether it falls under federal jurisdiction and whether cabinet approval is needed for a Private Member Bill.
The FBR has been tasked with submitting detailed reports covering sales tax collections and refunds related to cotton over the past five years, cotton trade data, revenue losses attributed to existing tax policies, and updates on the implementation of tracking systems such as RFID to regulate production and trade.
The committee emphasized that the FBR should engage with the Ministry of Commerce and consult the IMF if current tax measures are found ineffective in stabilizing the cotton sector.
Additionally, the Ministry of Energy (Power Division) has been directed to formulate short-term relief measures to address high electricity costs for farmers, particularly as discussions continue on canceling contracts with five Independent Power Producers (IPPs).
A comprehensive report on over-billing criteria used by power distribution companies has also been requested, detailing complaint resolution mechanisms and accountability measures for those responsible for excessive billing.
The committee has mandated that chief executives of all electricity distribution companies (Discos) attend the next meeting via Zoom to provide explanations and participate in discussions on addressing over-billing concerns within the agricultural sector.
