Finance Minister Naveed Qanar said on Monday that the government would not withdraw one percent increase in sales tax, from 15 to 16 percent, as some opposition members had opposed the duty contending that it would increase hardship of the poor.
The Minister at Senate standing committee on finance offered that the government would reduce other legislations/bills proposed in the new Finance bill, provided the opposition supported it on sales tax. Khurshid Ahmed said his party would oppose the increase in sale tax and excise duty through a cut motion in the House because it would further increase inflation.
The government, he said, instead of giving any relief had increased sale tax and duty that would further aggravate inflation. "We will not accept any duty on eatable items, as the country is already boiling because of inflation," he added.
The meeting also recommended that it must be binding on all organisations to lay before the parliament the rules and regulation they make, and suggested that instead of reviewing tariff on electricity on monthly basis, as proposed in the Finance bill, be review quarterly. The Minister opposed quarterly review of tariff, arguing that it was not possible due to fast changing prices of petroleum products in the international market.
Senators also questioned why the Water and Power Development Authority (Wapda) was being given Rs 135 billion subsidy when it was charging flat rates on electricity despite load-shedding. The committee recommended that National Accountability Bureau (NAB) be abolished, and if it was not abolished then its budget be reduced by 60 percent. The committee also recommended that 20 percent ethanol be blended in the petroleum products.