Senate Standing Committee on Finance has recommended sales tax exemption on the import of dump trucks for Khyber Pakhtunkhawa (KPK) and Balochistan on the pattern of exemption to Dump Trucks for Thar Coal Field through the Finance Bill 2016. In budget (2016-17), exemption to dump trucks for Thar Coal field has been proposed.
Exemption to coal mining machinery, equipment, spares, etc for Thar Coal Field as provided in the Sixth Schedule to the Sales Tax Act, 1990 includes vehicles for site use ie single or double cabin pick-ups. Dump trucks, although being vehicles for site use, are not covered under the said provision. Exemption from sales tax is, therefore, being granted to dump trucks.
While reviewing the budget 2016-17 here on Wednesday, some of the committee members recommended that sales tax exemption should be extended to the import of dump trucks for Khyber Pakhtunkhawa (KPK) and Balochistan. Senator Osman Saifullah Khan recommended government may allocate funds for the staffing and the capital expenditure related to the setting up of an Intensive Care Unit, (ICU) at the SZAB Medical University (PIMS) Islamabad.
Section 2(14)(d). Provincial Sales tax on services not claimable as input tax. Input claim is barred and "the definition of input tax has been proposed to be amended to exclude the Sales tax paid under respective Provincial laws." This amendment needs to be done away with as it will adversely affect the revenue generation efforts of the Provincial Revenue Boards, will lead to large amounts of refunds being stuck up and will have an inflationary impact in general.
In order to encourage lending to small and medium sized enterprises (SME sector) the Government may either mandate that lending to such companies comprise 15% of the total private sector lending by scheduled banks, or introduce differential taxation on the income of banking companies to encourage such lending. There is great disparity and imbalance in banking activity (e.g. advances to deposits ratio) between the provinces of Pakistan. Government may take steps to remedy this situation either through differential taxation or appropriate change in prudential regulations, he recommended. Job creation is the biggest economic challenge facing the nation. In order to encourage labour intensive corporate activity, all expense related to labour be treated preferentially for purposes of reducing taxable income of the company.
Government may rationalise and simplify the import process and the structure of import duties for equipment used to produce and store power from solar energy, which is a clean and renewable source of power. The current system is adhoc, open to misuse and impedes adoption of solar energy for generation of electrical power.
FBR may introduce a simplified form for filing tax return for eligible users of pre paid mobile telephone services so as to enable them to get refund/credit of WHT paid by them on such services. PSDP: It is recommended that the Raeen and Shagram bridges on Buni to Torkho road, Tehsil Mastuj, District Chitral may be rebuilt. Flooding in July 2015 destroyed the bridges at this location, Osman Saifullah Khan added.
Senator Nawabzada Saifullah Magsi recommended that to boost agriculture in Balochistan, which if timely completion of water sector projects is done would lead to a revolution in the socio economic conditions of the Province. It is proposed that ZTBL should be encouraged to provide cheap loans to the farmers which currently is very dismal. Also farm machinery import should be duty and tax exempt in Balochistan for 10 year period. Farmers in Balochistan should be provided interest free loans to convert tube wells to solar power. This will not only help the government in reducing its recovery loss as well as help the provincial government in reducing the heavy subsidy it has to pay for these tube wells, he added.
Senators Usman Khan Kakar, Sardar Muhammad Azam Khan Musakhci, Ms Gul Bashra recommended on the behalf of Pakhtunkhawa Milli Awami Party (PKMAP) that the Dumper Trucks be exempted from sales tax in chromites and coal areas of Balochistan and Customs House should be established for Customs Gateway at district Qamardin.
They recommended that funds should be allocated for at least 1000MW Solar, Wind, Gas and Coal power projects in Quetta, Qila Abdullah, Pashin, Muslim Bagh, Qila Saifullah, Zhob, sherani, Musakhel, Loralai, Ziarat and Harnai. At least 20 billion should be allocated for Kuchlak to Zhoh motorway on the Western Route. At least 20 billion should be allocated for Zhob to DI Khan motorway. At least 15 billion should be allocated for Bostan to Zhob, DI Khan, Kohat Railway line in the current budget.
For Petroleum and Natural Resources, the Mineral Survey should be conducted in Quetta and Zhob Division. Gas pipe line should be laid down from Quetta to Khanozai, Muslim Bagh, Qila Saifullah. Gas Pipe line should be laid down from Sanjavi, Loralai. Gas to be given to Aghberg of district Quetta. Gas pipe line should be laid between Pishin and Quetta and air Max Gas plant should be given to every district, Tehsil and Tehsil Headquarter in Balochi.
Senator Kalsoom Parveen recommended that allocation for New Gawadar International Airport may be enhanced to 200 million rupees. The sufficient allocation may be made for construction of Motorway Police Office in Quetta city.
Finance Division: Construction of B/T Road from Sui to Uch field. Balance 250 million be allocated for the project, construction of flyover at Koyal Phatak Samangli road Quetta:- balance amount of rupees 403 million be allocated for completion of the project. Funds may be allocated for construction of mother and child care hospital at Quetta on the analogy of Shahid Benazir mother and child care hospital at Nawab Shah. Industries and Production Division: Balance amount of rupees 261 million be allocated for establishment of Bostan Industrial Estate, Balochistan.
Rupees one billion be allocated for construction of cold storages for preservation of fruits and vegetables in the province of Balochistan. Sufficient funds be allocated for installation of solar tube wells in the province of Balochistan. Water and Power Division: Rupees one billion be allocated for flood protection schemes for Agricultural land and Orchards in Union Council Rud Mulazai Tehsil Karezat, District Pishin. Rupees 250 million be allocated for construction of Delay Action and Check Dams in Rud Malazai, Aghbargai, Kach Shamozai, Kach Sarangzai, Tehsil Karezat, District Pishin.
Senator Farhatullah Babar recommended the National Assembly that the salaries and pension of government employees should be raised by at last 20%. Senate recalls the May 28, 2015 decision at the All Parties Conference to build the western route of the CPEC on priority basis. It recommends to the National Assembly that the specifications of the western route of CPEC should thus be upgraded and brought at par with specification of the western route and to correspondingly raise the allocations for the western route in the budget 2016-17.
Senate recommends the National Assembly to make special allocations for addressing issues in climate change, environmental degradation and population dynamics as committed by Pakistan in the Paris Conference in December 2015. Senate recommends to the National Assembly to set up the National Commission for Human Rights Fund as provided for under Chapter VI Clause 23 of the national commission for human rights Act, 2012 and to provide initially a sum of Rs 500 million towards this Fund. Senate recommends to the National assembly to provide for special incentives in the budget to promote use of solar energy in the country.
Senate recommends to the National Assembly that the allocation for the FATA University in the budget for 2016-2017 be increased from 250 to 1000 million rupees. Senate notes that Pakistan is increasingly becoming a security driven state instead of a welfare driven state as required under article 38 (a) of the constitution. It recommends to the National Assembly to make long term economic policies to ensure that Pakistan is made a welfare driven state instead of one driven solely by security as at present.
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