Federal Finance Minister Senator Ishaq Dar presented the Finance Bill 2023 in the National Assembly, proposing to increase the sales tax on luxury goods to 25 per cent. The prime minister did not attend the House when presenting the Financial Supplementary Bill 2023 in the National Assembly.
On this occasion, Finance Minister Ishaq Dar said that a few months had passed since the proposed government came, during which the economy was being managed when the flood occurred. He said that more than 8 thousand billion was damaged due to the flood. The finance minister said that the Imran Khan government had signed an agreement with the IMF and must read it. It was not only a government agreement but a state agreement. Imran Khan deviated from his agreement. Due to mistrust, they took decisions contrary to the agreement. It led to uncertainty between the IMF and Pakistan.
While presenting the finance bill, the finance minister said that the ninth mission of the IMF came, and we had negotiations for 10 days. We indicated the implementation of various matters. When our government came, the country was burdened with debts of 34 thousand billion. Inflation was up to 2% in our 2013 government. Pakistan was growing at the rate of 6 per cent. A change was made in 2018, which moved Pakistan from the 20th to the 47th globally.
In the meeting chaired by Speaker National Assembly Raja Pervez Ashraf, which started about an hour late, the finance minister advised the people to be simple. He said that a national commission should be formed on the country’s economic disaster to investigate the causes of this disaster. Circular debt has reached the destruction of the country’s economy. When our government came recently, there was a disaster of floods and rains. Pakistan’s standing crops were destroyed. Despite the weak financial position, Rs 300 billion have been earmarked for flood victims.
The previous government entered into an agreement with the IMF on strict terms, and we adhered to it. The finance minister said the previous government signed an agreement with the IMF in 2019. This government signed an agreement with the IMF on strict terms. Our government honored the agreement made by the state. We gave priority to the state over politics. We have suffered a political loss that everyone has seen. Recently IMF visited Pakistan.
He said that due to the negotiations with the IMF, it had been decided to impose taxes of 170 billion rupees. New taxes are not being levied due to the inability to collect taxes as per the new tax target. The circular date of electricity has been substantially prevented from increasing. The previous government delivered circular debt of up to 2467 billion.
The Gst Rate on Various Goods Has Been Increased From 17 to 18 Per Cent!
According to the Finance Supplementary Bill 2023 presented by the Finance Minister, the sales tax rate on luxury goods has increased from 17 per cent to 25 per cent. The bill proposes a federal excise duty rate of 10 per cent on the retail price of beverages, while the GST rate on various goods has been increased from 17 to 18 per cent.
Proposed Additional Tax On Mobile Phones, Air Tickets, And Beverages
In addition to the proposal to levy advance tax on marriage halls and hotels, the Finance Supplementary Bill also proposes to levy advance tax on commercial lawns, marquees and clubs. At the same time, a proposal to increase the tax on mobile phones has also been included. Apart from this, there is also a proposal to impose a 10% tax on the retail price of beverages and an advance tax on air tickets.
The supplementary finance bill proposes increasing the cement tax by 50 paise per kg. In addition, there is a proposal to increase the federal excise duty on cement from one and a half rupees to two rupees per kg. The bill includes a proposal to levy a 10% advance tax under Section 236 of the CB.
Advance Tax Is Also Levied On Marriage Ceremonies, Seminars And Parties
The finance minister said there would be a 25 per cent tax on luxury goods. The Finance Bill includes a proposal to levy a 10% advance tax on wedding ceremonies, seminars, workshops, exhibitions, musical shows and other parties. This tax will be adjustable. The finance bill includes a proposal to increase the GST rate from 17 to 25 per cent on mobile phones costing more than $500.
According to the supplementary finance bill, it is proposed to levy a federal excise duty of Rs 50,000 per ticket and 20% of the total amount on air tickets for international travel. The higher of the two will be charged. Along with the proposal to impose a 10 per cent excise duty on fruits, juices and other beverages, the proposal to impose a 10 per cent advance tax on the market value of holding company shares is also included in the finance bill.
Ishaq Dar announced that a package of 2 thousand billion rupees had been given to the farmers. Up to one thousand billion rupees have been distributed. 30 billion rupees have been earmarked for youth loans. Farmers will be given cheap loans on agricultural implements. Farmers are being given 30 billion rupees for fertilizer. A discount is being given on a 5-year-old tractor. 75 thousand solar tube wells will be given to farmers.
The Prime Minister and the Cabinet Will Give the Plan to Reduce Their Expenses
The Finance Minister said that Prime Minister Shehbaz Sharif would soon take the nation into confidence on the Finance Supplementary Bill. The Prime Minister and the Cabinet will give a plan to reduce their expenses. Economic growth will be slow initially but will go up to 4% later. The finance minister said that the notification for opening LCs of medicines, petroleum, and sports had been issued. 170 billion current and previous targets of revenues will be fulfilled.
Finance minister said the most important thing today is to come together and decide the road map. We must adopt national thinking for the economic future and sit together. It is hoped that the institutions will continue to receive full support. I will submit to everyone that we have seen in the past. Once again, we are facing a challenge. If we work together, we will be on the path of progress. Speaker National Assembly said this bill is not being sent to the Standing Committee.
Finance Supplementary Bill 2023 Was Also Presented in Senate
On the other hand, a Senate meeting was held under Chairman Sadiq Sanjrani, in which Finance Minister Ishaq Dar arrived to present the Finance Supplementary Bill 2023. PTI senators raised slogans against the government. Finance Minister Ishaq Dar presented the Finance Bill in the senate session amid the noise. Chairman Senate said that the recommendations on the Finance Bill should be presented in the House by February 23. Later, the Senate session was adjourned till 10:30 am on Friday, February 17.
Chairman Senate has announced the panel of the chair for the current session, in which Senator Umar Farooq, Senator Kushu Bai and Syed Ali Zafar are included in the panel of chair.