ISLAMABAD - The federal government on Friday announced a number of revisions in the Finance Bill in the light amendment proposals by the parliamentarians, giving concessions to certain sectors of economy and segments of society.
Finance Minister Ishaq Dar, winding up budget discussion in the National Assembly, said that government has reviewed its decision on salary increase and now it will merge three allowances, instead of two, into the basic salary and then raise it by 10 percent – making a cumulative impact of around 13 percent increase salaries.
He assured government would review the issue of increase in parliamentarians salaries after PM Nawaz Sharif returns, saying they realise that their salaries were less than that of provincial assemblies’ members.
The minister also announced reducing GST on the imported and locally manufactured tractors from 10 to 5 percent. Similarly, customs duty on harvesters and planters has been withdrawn. The price reduction on urea and DAP fertilisers would be effective from June 22, he added.
He said GST on import of machinery and apparatus of dairy sector has also been decreased from 17 to 5 percent.
Dar said they have withdrawn proposed amendment in income tax law after the opposition criticised it as a ‘move to give a backdoor escape to the prime minister’s daughter’ Maryam Nawaz in Panamagate scandal.
He said government has reduced taxes for digitalisation of electronic media. It has cut customs and regulatory duties on reception apparatus for receiving satellite signals, TV transmitters and set-top boxes from 35 to 11 percent. GST on these items has also been reduced from 17 to 5 percent.
The government has also reduced customs duty on raw materials for industries preparing SIM cards from 20 to 5 percent, he added.
Dar further announced abolishing Federal Excise Duty on charted planes used by Pakistan Army for its movement.
Also, they have withdrawn import duty, sales tax and withholding tax on ships.
The minister in the beginning of his speech was interrupted by opposition leader who pointed out that a group of around a dozen treasury benches members had left the house in protest.
Two lawmakers, Abdul Sattar Bachani and Amir Dogar, drew attention of the speaker towards disinterest of government MPs in budget proceedings. Dogar even pointed out lack of quorum in the middle of Dar’s speech, creating embarrassment and confusion for treasury.
Defence Minister Khwaja Asif and some other members, ostensibly on Dar’s direction, rushed outside to get back protesting treasury lawmakers.
The minister said government has approved a record numbers of 86 recommendations out of 139 of the Senate. Out them, 34 proposals were accepted in totality, 30 approved in principle and the remaining 22 approved partially. However, the remaining 53 proposals cannot be implemented immediately, he added.
He defended the supplementary grants by saying these were only 6 percent of the budget this time against 15.2 percent of the 2012-2013 budget. He said that large component of supplementary budget is subsidy, which was given on sugar, electricity, wheat and fertilisers.
The minister rejected the impression that taxes on petroleum products have been increased and presented figures of current taxes on POL items.
He also defended the credibility of the economic indicators, as a large number of lawmakers in their budget speeches doubted the statistics released by the government.
Talking about the taxation, Dar said government has enhanced the direct taxes and eliminated tax exemptions granted through SROs. He said government did its best to give relief on the commodities in use of poor.
He also rejected the opposition parties’ allegations regarding making discrimination in implementing CPEC projects in the provinces.
Coming down hard on previous two governments for taking massive loans, minister said country’s public debt surged to Rs14,318 billion in 2013 (when PPP’s term ended) from Rs2,940 billion in the year 1999 (when Musharraf took over).
He admitted PML-N government has taken Rs4,850 billion loan in its three years tenure, taking overall debt to Rs19,168 billion. This government took $15.23 billion foreign loan and repaid $10 billion against previous loans, making net impact of $5.23 billion loans.
Sharing their views on ‘Charged expenditure’, the opposition members viewed that government should share details of foreign loans with house. “Government should have take permission from house before taking foreign loans,” they remarked.
Speaking on recommendations of Senate for budget 2016-17, the lawmakers in lower house lauded almost all the recommendations.
Taking part in debate, Mehmood Achakzai from PkMAP welcomed the recommendations from Senate related to Balochistan. About salaries of lawmakers, he said they should be made equal to anchorpersons. “Anchors who criticised us (politicians), our salaries should be equal to them,” he added.
PPP’s Shazia Marri, on his turn, said that there was a need of announcing NFC award. “Recommendations related to Balochistan are welcoming,” she said, there should be Motorways in Sindh as well.
Sherpao from QWP said that Customs Act should be abolished from Malakand. He raised concern about less allocation of funds for Fata. He also stressed the need for conducting census in country.
Sahibzada Tariq Ulla from JI also supported recommendations related to Balochistan. “Government should hold census as earlier as possible,” he added.