The Public Accounts Committee on Tuesday barred the Federal Board of Revenue (FBR) and other government departments from issuing of exemption Statutory Regulatory Orders (SROs) without the approval of the Parliament. Chairman PAC, Nadeem Afzal Gondal, said that in future no government department including the FBR along with other Ministries would issue SROs without approval of the Parliament.
The last meeting of PAC was also attended by MNAs Noor Alam Khan, Riaz Fatyana, Dr Attiay Inayatullah, Secretary Ministry of Finance Abdul Khaliq, Deputy Chairman Planning Commission Dr Nadeem-ul-Haque, senior officials of the Federal Board of Revenue (FBR) and Competition Commission of Pakistan (CCP).
Dr Nadeemul Haq said any change in tariff rates and duties is the sole prerogative of the Parliament and this power should only be used through the Parliament. 'We are against the SRO culture as it is a kind of bargaining with the tax evaders. He said due to the SRO culture, the tax-to-GDP ratio has not increased as SROs benefited specific industries and individuals.'
He was of the opinion that it is the Parliament, which approves the budget. "Imposing and withdrawing of tax is the prerogative of the Parliament," he added. The FBR official has given a detailed briefing to the committee on SROs elimination, tariff rationalisation and trade liberalisation. They informed the PAC that no tax shall be levied for the purpose of the federation except by or under the authority of an act of the parliament.
They said that exemption regime distorts the level-playing field, incentives offered are mostly not passed on to the end consumers, manufacturers/big stakeholders are often given preferential treatment. The PAC also declared the huge difference in the pay structure of various government departments as unfair and urged the government to constitute a commission to address the issue.
Nadeem Afzal Gondal said that huge difference between the pay structure of various government departments, autonomous, semi autonomous organisations and corporation is in violation of Article 25 of the Constitution. The PAC also issued directives to auditor general of Pakistan to conduct audit of record of cash reward and made audit paras against officials found guilty of non-provision of record pertaining to cash reward.
"I do not understand the criteria of getting special allowance by the government employees working in the Prime Minister Secretariat and Presidency. Special allowance should only be given to security forces who are fighting at borders", he said. Secretary Ministry of Finance briefed the committee on the difference in pay structure/scale of civil servants, civil armed forces, armed forces, general allowance admissible to the civil servants and employees of the autonomous and semi-autonomous bodies and organisations, armed forces personnel allowances deployed on the western front, pay and allowances of superior judiciary, additional pay and allowances in various federal government divisions and organisations, departments/ employees entitled for a percentage of recoveries made by them.
Secretary Finance said that some 15 years ago the pay scale of grade 22 officers, Army General and Chief Justice of Pakistan was similar. Presently, the salary of Chief Justice of Pakistan is Rs 773328, grade 22 officers Rs 250000 and general Rs 335000. "The huge different in pay structure, special allowance and percentage on recoveries is badly affecting working condition in different government departments", he said. He said that due to special allowances and percentage on recoveries in various departments, the government employees got themselves transferred to these departments to avail hefty perks and privileges. Raiz Fatyan said that Ministry of Finance, the FBR conduct joint review of different pay scale and submit their recommendation in this regard.
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