President Approves Finance (Supplementary) Bill 2022 – Pakistan

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ISLAMABAD (Dunya News) – President Dr. Arif Alvi on Saturday gave his approval to the Finance (Supplementary) Bill 2022 under Article 75 of the Constitution.

The finance bill was adopted by the National Assembly on 13 January.

The National Assembly on Thursday passed the Finance (Supplementary) Bill 2022 with a majority vote clearing the way for the government to impose additional taxes of Rs 350 million on the already overburdened masses.

A meeting of the National Assembly was held under the chairmanship of Asad Qaiser.

The approval of the Supplementary Budget Bill was necessary to ensure that Pakistan’s sixth review of the $6 billion Extended Financing Facility (EFE) would be approved by the IMF Executive Board, which is due to meet later this month to decide on the disbursement of a $1 billion tranche. .

During the debates, the PPP presented an amendment to the amending budget while the President voted orally on the amendment which was contested by the opposition. The NA president asked voters to vote in favor of the amendment. There were 150 votes in favor of the amendment and 168 against.

Shaukat Tarin

Responding to Shahid Khaqan Abbasi’s question, Finance Minister Shaukat Tarin said the mini-budget is not a tax storm, adding that out of Rs 343 billion, Rs 200 billion will be refunded. “It’s not a tax, but a documentation of the economy,” he said and added that everyone will know how much who earned.

Shaukat Tarin dismissed cries from opposition parties over the bill, saying it was aimed at documenting the economy. Finance Minister Shaukat Tarin said the government was trying to correct the structural problems with the tax to ensure inclusive and sustainable growth in the country.

He said no additional taxes were imposed on everyday items, including laptops, baby food, roasts, pesticides, baked goods and digital payments.

He said taxes of only seventy billion rupees have been proposed on luxury items in this bill which will have no effect on ordinary people. He said a refund of Rs 280 billion will be given under this bill. He also assured the House that drug prices will not increase either.

The Minister of Finance said that the escape from the IMF was not possible given the current circumstances. He said that we must bring our products to value added tax mode to achieve inclusive and sustainable growth in the country.

He expressed his belief that economic growth is likely to reach around 5 percent this year due to the government’s cautious policies. He said incomes increased by 35% while remittances and exports were also on an upward trajectory.

Finance Minister Shaukat Tarin said the economy is growing and is expected to grow by 5% in the current fiscal year. He pointed out that there is an unprecedented thirty-five percent growth in revenue collection. He said remittances and exports were also growing. The production of five crops was exceptional thanks to our investments in the agricultural sector.

Shaukat Tarin said the government was focusing on inclusive and sustainable growth. He said that we are providing household health cards under which every family is entitled to medical treatment worth one million rupees per year.

He said that we have started the Kamyab Pakistan scheme under which interest free loans are given for agriculture and business besides construction of houses.

Additional invoice

According to the bill, the government will impose a tax on approximately 150 goods at the rate of 17%. As a result, goods that were currently fully exempt from general sales tax (GST) or were taxed at rates of 5% to 12% would now be taxed at 17%.

According to the copy of the Finance (Supplementary) Bill 2021 available with Dunya News, the bill proposed the retraction of the GST exemption on 6 zero-rated industry items.

“Ending the tax exemption on zero-rated items will add a burden of Rs 9 billion, was also proposed in the bill. The bill also proposed the withdrawal of the tax exemption on imported milk, bicycles.

The bill proposed to end the GST exemption on 59 imported items, while the GST exemption on baked goods and branded food items would also be removed.

The exemption granted on imported machinery for the energy sector is to be withdrawn, while an increase in federal excise duties has also been proposed for vehicles over 1000 cc.

The bill proposed the imposition of an additional 17% tax on imported mobile phones and a 100% increase in the advance tax on vehicle registration fees, while an advance tax on television series and Foreign Drama was also offered.

The zero rate available on supplies of raw materials for imported milk would be abolished and taxed at 17%. Deliveries to duty-free shops will be taxed at 17%. As they will be taxed for the first time, there is no income estimate.

The rate of income tax on mobile phone calls will be increased from 10% to 15%, while it has also been proposed that imported meat and poultry products will be exempt from tax.

The finance bill also proposes that bread prepared in bakeries, restaurants, food chains and stores be taxed at a rate of 17% and that the sales tax on food preparations and confectionery provided by restaurants, bakeries and confectionery increases to 17%.

The GST on silver and gold will increase from 1% to 17%, while a tax will be imposed on computers and laptops.

The mini-budget will not affect the common man

At a ceremony on Tuesday, Prime Minister Imran Khan said Pakistan had the lowest tax revenue in the world and everyone, including the Federal Board of Revenue (FBR), was involved in the non- promotion of tax culture in the country. He said Pakistan cannot prosper by selling vegetables and the mini budget will not affect the common man.

The prime minister said his government would provide land on lease to investors wishing to set up industry, adding that the government had decided to lease government land for the industry. Imran Khan said the government has adopted an effective and sound strategy to stabilize the economy and deal with the global pandemic at the same time. He said Pakistan has dealt with COVID19 with an integrated policy protecting the economy and human lives.

The Prime Minister said that inflation has hit the whole world hard and the government is trying to protect our citizens from the ill effects of this menace. He said exports, foreign remittances and tax collection are increasing significantly as these areas are the government’s top priority. “Government received $32 billion in foreign remittances and $31 billion was recorded in the export sector,” he said, adding that the Federal Board of Revenue had collected taxes of Rs 6,000. billion in the current fiscal year.

Imran Khan said, “IT exports amounted to Rs 3.5 billion with an increase of 70% while Agriculture received revenue of Rs 1.1 trillion, adding that due to an integrated strategy from the government, the construction sector is also experiencing record development. “The tax culture in the country should be encouraged to increase tax revenue,” he said, adding that the government has also introduced health insurance for each family of the country up to 1 million rupees.

Imran Khan said that promoting business activities and creating decent business opportunities in the country is our priority and the government will provide all possible facilities to establish industrial zones in the country.

The Prime Minister went on to say that the said government is committed to guaranteeing the rule of law in the country despite the fact that certain elements create obstacles in this regard. Emphasizing the need to root out corruption from the country, he said a corruption-free Pakistan is our mission and we will continue to fight against corrupt elements and practices.

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