The Finance Bill 2024, which proposes a tax hike on the salaried class, was overwhelmingly rejected by the Senate Committee on Finance and Revenue on Monday.The Senate has recommended 128 items to the National Assembly for inclusion in the Finance Bill 2024, including nine public sector development projects (PSDP) for the upcoming fiscal year, following its evaluation of the report provided by the apex finance committee.
The budget recommendations were given by Saleem Mandviwalla, Chairman of the Senate Standing Committee on Finance. Out of the 128 proposals, 69 were related to the general budget for FY25; other recommendations included modifications to the Customs Act of 1969, the Sales Tax Act of 1990, the Income Tax Ordinance of 2001, the Federal Excise Act of 2005, the Customs Act of 1969, and one on abandoned properties.
The federal government’s plan to tax the salaried class, especially the lowest income band, was overwhelmingly rejected by the committee. Fees on chicken feed, newborn milk and other dairy goods, less expensive cell phones, and stationery supplies including children’s textbooks and pencils were also turned down.
Mandviwalla clarified that of the whole budget of Rs. 18.9 trillion for FY25, Rs. 9.75 trillion would be set aside for interest and debt repayment, and that the remaining Rs. 2.63 trillion would need to be borrowed in order to balance the budget. In order to boost revenue, he pleaded with tax authorities to include the 2.9 million non-filers in the tax system.
The committee suggested talks and special allowances to address the concerns of people with disabilities who were left out of the budget. According to Mandviwala, the group suggested taxing hospitals that charge for services and providing incentives to charitable institutions.The committee was also against the proposed tariffs on school supplies and books being removed. Mandviwalla warned that further politicization of economic matters could make future budgets worse and urged the House to refrain from doing so.
