ISLAMABAD : Feb 15,2023: Finance minister , Ishaq Dar, on Wednesday tabled the Finance Supplementary Bill 2023 in the both houses of the parliament.
The Finance minister tabled the amended Finance bill 2023 first in the national assembly and after concluding the debate on it tabled it in the upper house of the parliament–Senate.
Ishaq Dar while opening debate on the bill in the lower house , blamed Pakistan Tehreek e Insaf (PTI) of the current fiscal meltdown. He said Imran Khan rule was responsible of Pakistan’s economic problem that has opened up a floodgate of inflation for the masses. Ishaq Dar claimed that the Nawaz era was an era of development of Pakistan.
In Senate , Finance minister faced tough time as the opposition protested against introducing the amended Finance bill. The opposition members shouted slogans “. Imopted government na manzoor”.
Earlier , Noor Alam Khan, a dissident member of Pakistan Tehreek e Insaf (PTI) and Public Account Committee ( PAC ) came hard on the Shahbaz government . He said the tax authorities not the masses were responsible of the on-going economic crisis of Pakistan. Noor Alam Khan demanded of the government to tax affluents and not the poor who already were on the losing end.
The finance bill proposes the following:
GST to be increased from 17pc to 18pc; GST on luxury items to increase from 17pc to 25pc
On first class and business class air tickets, federal excise duty of 20pc of the airfare or Rs50,000, whichever is higher
10pc withholding adjustable advance tax on the bills of wedding halls
Increase in federal excise duty on cigarettes, and aerated and sugary drinks
Increase in federal excise duty on cement from Rs1.5/kg to Rs2/kg
Benazir Income Support Programme (BISP) budget increased to Rs400bn from Rs360bn
President Arif Alvi decline to promulgate ordinance for mini budget.
President , Arif Alvi ‘s decline to promulgate an ordinance for a mini budget has embarrassed Shahbaz government and left it to get the mini budget passed from the parliament.
Finance minister, Ishaq Dar, had called on the president of Pakistan here on Tuesday for persuading him to promulgate an ordinance to introduce mini budget to impose the new taxes to meet the conditions of the International Montary Fund (IMF).
The president Alvi had told Mr Dar that he would not approve promulgation of the ordinance to introduce the mini budget . The president advised to the Finance minister to table a bill for amendment in the Finance Bill 2022-23 to get the mini budget passed.
After the president’s snubbing , the government decided to go other way around and table a bill in the parliament for amendment in the Finance Bill 2022-23.
In order to meet legal requirements , the government has summoned a session of the National Assembly and Senate today (Wednesday).
The bill for amendments in the Finance Bill 2022-23 is likely to be passed in a day or two from both houses and it will be followed by a formal session of online talks between the government economic managers and the fund team to conclude an agreement for the release of a $ 1.2 billion installment under Extended Fund Facility (EFF).
The government is going to impose the new taxes of Rs 170 billion through the mini budget.
The new taxation measures are other than withdrawal of subsidies for a number of sectors and revision of general sales tax (GST) from 17 % to 18 %.