ISLAMABAD - Senate Standing Committee on Finance and Revenue on Tuesday expressed displeasure over the absence of finance minister and secretary finance from the committee’s meeting.
Senate Standing Committee, which met under the chair of Senator Talha Mahmood, has started to discuss the recommendations of the senators for Finance Bill 2021-22. However, absence of Finance Minister Shukat Tarin and Secretary Finance Yusuf Khan has annoyed the senators at the start of the meeting. Members of the committee walked out in protest.
Officials of the ministry of finance informed the committee that Finance Minister and Secretary Finance were in cabinet’s meeting. Talha Mahmood said that there is no need to discuss the annual budget when policymakers are not present.
Later, the members of the committee noted that government had not incorporated the recommendations of the upper house of the parliament in Finance Bill in last year. Senator Sherry Rehman said that government has not included the Senate’s Standing Committee on Finance recommendations in the budget in previous year. Committee chairman said that he would investigate the matter that why the government had not incorporated the budget proposals of the senators. Committee members noted that government has not provided any relief to the masses in the annual budget for next fiscal year. They said that Federal Board of Revenue (FBR) is threatening the taxpayers to put them behind bars. Senator Saadia Abbasi said that FBR is asking to put taxpayers behind the bars.
Condemning the provision 203A, which gives the FBR powers to arrest and prosecute without warrant in the Finance Bill, PPP Parliamentary Leader in the Senate, Senator Sherry Rehman said, “On one hand we are being told that FBR powers are being curtailed and on the other, it is being made into a mini NAB through this provision. I reject this Finance bill provision which is a mini martial law by stealth. The power to arrest without warrant is draconian and unprecedented. Now the finance minister will be able to authorise an arrest minus warrant. No doubt that tax evasion needs to be countered and the direct taxation net needs to be expanded but this is certainly not the way. The question is that why is FBR being given the powers to arrest without warrant? Senate had unanimously rejected provision 203A and this must be removed from the Finance Bill”. The committee endorsed Senator Sherry Rehman’s demand and collectively decided to remove provision 203A.
Chairman FBR Asim Ahmad said that provision of putting people behind the bars is already included in the laws. He clarified that arrest would be made after getting permission from the Federal Minister for Finance and Revenue. The Committee has also rejected the government’s proposal of increasing tax on sugar by saying it would increase the commodity prices in the country. In budget, to ensure collection of due taxes, sales tax on sugar was proposed to be levied on retail price by including the said product in Third Schedule. It would help the government to generate additional Rs7 billion.
Talking about the supplementary grant, Sherry said, “Supplementary grant in the Finance Bill is for emergencies. The government is asking the Parliament to give post-facto approval to a record Rs1.248 trillion supplementary grants for expenditure overruns and re-appropriation, budget documents show. This makes no sense. Rs545 billion had been regularised last year and now 130% higher supplementary grants are being presented for approval. This surely raises a question on the processes leading to budget estimates and expenditures”.
The committee approved the recommendation of sale of goods through online market place is proposed to be brought into the sales tax net by deeming the online market place as supplier in respect of third party sales through their platform. The Committee has informed that government would generate Rs10 billion from this proposal.