ISLAMABAD - Senate Standing Committee on Finance Revenue and Economic Affairs on Tuesday finalised report on the Finance (Supplementary Bill), 2021, which would be sent to the National Assembly. 
Senate Standing Committee on Finance, Revenue and Economic Affairs met on Tuesday to deliberate upon the report of the Finance (Supplementary Bill ), 2021 which was earlier referred by the House in its sitting held on 4th January, 2011. The committee meeting was presided over by its Chairman Senator Muhammad Talha Mahmood here at the Parliament House. 
Senate has forwarded its proposals on mini budget to National Assembly. Under the Constitution, only the National Assembly has powers to pass the money bill and such a bill can originate only in the Lower House. But, a copy of the same has to be placed before the Senate which may within 14 days make recommendations to the National Assembly. The Constitution doesn’t bind National Assembly to accept these recommendations.
The Senate’s committee has finalised the proposals on mini budget in last five working days. The Senate Standing Committee on Finance has rejected some key provisions of the Finance Supplementary Bill, 2021 including provision of digital payment, disclosure of information of public office holders, increase withholding tax from 10 to 15 percent of cellular services, 17 percent sales tax on seeds, 17 percent sales tax on locally-manufactured mobile phones, and increase in the rate of withholding tax on purchase of motor vehicles to discharge on money. It has also rejected the proposed withdrawal of sales tax exemption on solar panel system, arguing that the measure would discourage the people to switch to cheap energy. The committee has also rejected the government’s proposals of taxing jewellery, matchbox and formula milk and other products of a common use in recently announced mini budget. 
Senator Talha Mahmood said that as the Committee xhairman I have fulfilled the constitutional requirement on the process of the Bill by making painful decisions. “I pray that the apprehensions of the committee prove infructuous and the wisdom of the government, the Federal Board of Revenue and the Ministry, behind the imposition of the new tax policies prove prolific. 
The chairman Committee thanked all the committee members for vetting upon the bill at length in the larger interest of the general public. The chairman Committee reiterated that the committee strongly believes that the bill will bring a tsunami of inflation in the country since the basic needs are being inflated by the imposition of taxes on commodities in usage of the common man. The chairman committee also apprehended that the refund system which is made the basis of the new Finance Bill is unrealistic and impractical. “All the money will be dumbed in the government’s treasury” he stated. “It will also bring further gap between the business community and institutes”, he further added. 
The Committee unanimously endorsed the views of Senator Sherry Rehman and Dilawar khan for evolving a mechanism of voting on the Senate recommendations. Clause wise reading of the report was considered by the committee members and made appropriate amendments. The meeting was attended by Leader of the House in the Senate, Dr Shazad Waseem, Senator Saadia Abbasi, Sherry Rehman, Saleem Mandviwalla , Dilawar Khan, Mohsin Aziz, Faisal Saleem, Syed Faisal Ali Subzwari, and Senator Musadik Masood Malik, along with officials of the attached departments.