ISLAMABAD  -  The Pakistan Tehreek-e-Insaf (PTI) government suffered second defeat on Wednesday by a parliamentary committee that opposed the government’s plan to give effect to new income tax rates from July this year.

The Senate Standing Committee on Finance and Revenue has rejected the government’s plan to give effect to new income tax rates from July this year with a thin majority of 3-2. This was consecutive second day when government suffered a defeat as the Senate’s panel on Tuesday rejected the reduction in customs duty rates for about three-dozen raw materials. The committee members said that the government should implement the new taxes from the start of October otherwise people would approach different courts and would take stay orders.

Later, the Committee recommended the government that new income tax rates should be made effective after President signs Finance Supplementary (Amendment) Bill, 2018. It might be mentioned here that Senate could only give recommendations on the money bill. It depends on the National Assembly either to accept or reject the proposals moved by the Senate.

The Committee deferred the decision on the removal of bar of purchase of property for non-filers till the next meeting to be held on Thursday after Minister of State can consult the matter with Federal Minister for Finance Revenue and Economic Affairs and come up with a proposal.

The meeting was attended among others by Senators Mohsin Aziz, Khanzada Khan, Haroon Akhtar Khan, Musadik Malik, Muhammad Ateeq Sheikh and Talha Mehmood, Minister of State for Revenue Hammad Azhar, Chairman Federal Board of Revenue and officers from FBR.