Despite strong opposition from the Ministry of Finance, Senate Standing Committee on Finance here on Thursday recommended 10 percent increase in basic salary of the government employees. The meeting of the Senate Standing Committee on Finance presided over by Senator Farooq H Naek finalised recommendations on the Supplementary Finance (Second Amendment) Bill 2019 presented by the Finance Minister Asad Umar in the National Assembly on January 23, 2019.
Senators belonging to different parties gave their recommendations for the supplementary finance amendment bill. Special Secretary Finance Naveed Alauddin informed the committee that fiscal deficit is on higher side and therefore the possibility of increase in salaries is not possible. Thus, the proposal to increase salary of government employees would be presented in the next fiscal budget (2019-20).
The committee rejected the proposal that allows non-filers to procure up to 1300 CC vehicles and recommended that non-filers should be allowed to purchase vehicles up to 800cc. FBR Member Inland Revenue Policy Dr Hamid Attiq Sarwar told the committee that the production of tobacco was recorded 70 million kilograms last year in which 10 million kilograms tobacco was exported and the companies purchased 45 million kilograms. "We don't know about the rest of tobacco," he said.
Director General Trade Policy Muhammad Ashraf informed the committee that around 50,000 to 70,000 vehicles are being illegally imported by misusing computerized national identity card and passport numbers of other people. The DG added that there is a ban on the import of cars except under personal baggage scheme and gift scheme.
The committee recommended to the National Assembly to reduce sales tax on production of coal in Balochistan. The FBR officials informed that department is collecting Rs 425 sales tax on one metric tonnes of coal and this is very meagre. He requested the committee to propose increase in sales tax on coal.
The member Planning Commission informed the committee that the government will release Rs 5 billion till 30th of June this year for the construction of 30 small dams in Balochistan.
Senator Siraj-ul-Haq in his recommendation purposed to clean the economy from interest (riba). The State Bank officials said that the government is taking measures to implement Islamic banking in the country. There are 2,850 Islamic banking branches of different banks while Zarai Taraqiati Bank has also announced to start Islamic banking in near future.
The committee gave recommendations for the issuance funds for construction of a cancer hospital in Quetta. The committee also approved with majority of vote issuance of funds for Senate proceedings to the senators instead of giving 25 air tickets.
The committee took stock of 60 suggestions of Senator Muhammad Talha Mahmood. It was decided that suggestions related to provinces would be sent to the relevant provincial institutions along with the committee's letter. All suggestions with regard to National Highway Authority and Gilgit-Baltistan were approved. The committee approved to continue regulatory duty on recycling material under DTRE. It also approved the suggestion to include locally manufactured items in the list of products under the Free Trade Agreement between Pakistan and China.
The committee also approved the suggestion of completing Taxila Haripur Road on immediate basis for Hattar Industrial Zone and widening of road from Havelian to Abbotabad.
The committee was further briefed that contract of clearing land sliding has been given to Frontier Works Organisation (FWO). Senator Talha's recommendation of paying compensation money to the affected people of the Bhasha and Daso Dams was also approved. The committee also approved the recommendations on Babusar Tunnel and early completion of Gwadar Port.
It also approved the recommendation of construction of less capacity hydel projects. The recommendations of the committee will be submitted to the Senate today (Friday).
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