ISLAMABAD: The Upper House of the parliament saw a fiery debate on the Finance (Supplementary) Bill, 2023, on Friday as the opposition lambasted the government for bringing what it said was an “anti-poor” and an “IMF-dictated mini-budget.”
In addition, the house also adopted recommendations of the Senate’s Standing Committee on Finance and Revenue regarding the Finance (Supplementary) Bill, 2023.
“This government has nothing to offer to the masses except audios and videos,” deplored the Leader of the Opposition in the Senate, Dr Shahzad Waseem.
“The forex reserves are hitting rock-bottom and the world is simply not ready to help Pakistan—due to the ill reputation of this government,” he added.
The opposition leader took on the government for imposing excessive taxes of 170 billion rupees in the mini-budget. This, he said, has been done at the behest of the International Monetary Fund (IMF).
“We don’t know what this IMF agreement is all about. The unending flood of inflation is wiping out the poor segments of society. Not long ago, the price of onion was Rs65 per kilogramme that has been increased to Rs250 per kg. The tomato that would cost Rs50 per kg is now Rs130/kg. Where should the poor go?”
Finance (Supplementary) Bill, 2023: Dar unveils taxation measures as Pakistan looks to appease IMF
Waseem also lashed out at the government for shutting down the Sehat Sahulat Programme launched by the federal government of the PTI that aimed at providing free medical treatment to the public.
“They have pushed the common man to the wall and yet they have the audacity to seek more sacrifices from the public,” the opposition leader lamented.
Law Minister Azam Nazeer Tarar, in response, passed the buck on the previous federal government of the Pakistan Tehreek-e-Insaf (PTI).
“The previous government is responsible for this inflation—the opposition should tell the house who struck agreement with the IMF,” he stated.
“One man destroyed the country’s economy and is now comfortably sitting in his home,” the minister remarked.
Speaking on the floor of the house, State Finance Minister Aisha Ghaus Pasha said, the increase in power and gas tariffs will not apply on consumers using “less energy.”
She said the government has increased the budget of the Benazir Income Support Programme (BISP) by Rs40 billion with an aim to provide relief to the downtrodden segments of society.
“We will have to take structural reforms and tough decisions to put the country on the path of stability. There should be no politics on it,” the state minister said, adding that the government would soon announce austerity measures to reduce expenditures.
Mushtaq Ahmed Khan from Jamaat-e-Islami (JI) termed the mini-budget a “black document” for imposing excessive taxes on gas, electricity, and other edible items.
Senate has made few recommendations to the National Assembly for changes in the Finance (Supplementary) Bill, 2023, to fix a definite amount of tax on international air travel for each destination instead of imposing a 20 per cent tax.
According to the recommendations of the Senate to the National Assembly on Friday, the Finance (Supplementary) Bill 2023, laid in the House on February 15, 2023, brings about an increase in the standard rate of general sales tax from 17 to 18 per cent besides increasing the federal exercise duty on sugary items, tobacco, airline tickets, marriage halls, and cement.
Senator Saleem Mandviwalla suggested that instead of imposing 20 per cent tax, a definite amount should be fixed for each destination.
The committee recommended that the federal excise duty (FED) on fruit juices should be decreased from 10 to five per cent. Similarly, to curtail the usage of tobacco as per the global practices, government has increased tax per thousand cigarettes from 6,500 rupees to 16,500 rupees.
Additionally, the FED on per kilogram of cement has been increased from one rupee 50 paisas to two rupees.
Mandviwalla said the majority of banquet halls are not even registered with the FBR. It was further recommended that before imposing tax, the government should make efforts for the registration of marriage halls. Senator Mandviwalla reiterated that this bill will only burden the taxpayers of the country. He proposed that government should take measures to bring the non-taxpayers under the ambit of the FBR.
The house was adjourned till Monday.
Copyright Business Recorder, 2023