The Senate Standing Committee on Finance and Revenue argued in favor of eliminating all taxes from digital applications, pointing out that a sizable portion of young people use social media and freelance online, which also helps with remittances abroad.The committee members also suggested taxing phone use over $500 in income.
The Senate Standing Committee on Finance and Revenue held its first meeting at Parliament House with the aim of examining and completing the recommendations about the Finance Bill, 2024. This bill includes the Annual Budget Statement that was given to the house on June 12th.
The chairman opened the meeting by extending a warm greeting to all attendees and asking the committee members to provide a thorough rundown of the Money Bill 2024.
Senator Anusha Rahman Ahmad Khan spoke in favor of eliminating all taxes from digital applications, pointing out that a sizable portion of young people use social media and freelance online, which also helps with overseas remittances. She suggested charging for phone use over $500 in earnings.
Despite his overall rejection of the Finance law 2024, Senator Mohsin Aziz called it a “beggars budget” and pledged to examine every section of the law.Senator Manzoor Ahmed Kakar voiced reservations about the Money Bill 2024’s tax impact on the general populace.
Citing actions included in the federal budget to address this issue, the Federal Minister for Finance underlined the necessity of broadening the tax system. In view of prospective IMF exit considerations, he emphasized the significance of raising the tax-to-GDP ratio. In addition, he talked about initiatives to automate the Federal Board of Revenue (FBR) in order to promote more transparency in the economy and emphasized exemptions granted to the salaried class. He also listed sanctions against non-filers, such as requiring passports to include an NTN number in order to travel abroad.
During the session, the committee asked the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Petroleum to explicate the rationale underlying levy rate development in the revision of Petroleum Products (Petroleum Levy).In addition, the committee examined modifications made to the Customs Act of 1969 and observed inconsistencies in the procedure, especially with regard to the appointment of a director general via a budget bill.The committee members have pushed hard for the addition of fines to the board for failure to comply with ADR notices and have proposed changes to ADRs (Alternative Dispute Resolutions).
Senator Anusha Rahman Ahmad Khan expressed surprise that the High Court could actually be directed to construct a case management system when Clause 3, Subclause 16 was being examined. She raised worries about the absence of sanctions for failing to carry out the aforementioned paragraph, emphasizing how it might have a negative impact on the integrity of the Parliament and the High Court.The OGRA Chairman updated the committee on the planned increase in the gasoline charge in the Financial Budget 2024–25 following the recess.
The Committee suggested the OGRA look for a workable alternative to subsidizing gas stations or enacting two rates for varying social levels in order to offer incentives to the worthy classes.
In addition, the tariffs included in the Financial Budget 2024–25 were discussed by the Senate Committee on Finance and Revenue. To boost domestic production, officials said that the government had raised tariffs and exempted certain industries from them. The officials also announced a hike in customs charges on aerosol items, glass boards used in TV panel manufacture, and printed circuit boards covered in metal, whether bare or packed.Moreover, the import of fresh and dried fruits, wheat, and cane sugar, beet sugar, white crystalline, and white crystalline beet sugar from Afghanistan will all be subject to a 10 percent customs duty.
Additionally, the government has waived customs fees for solar energy products.According to Senator Saleem Mandviwalla, aid ought to be provided for everyone. The government has raised customs duties on the import of electric vehicles (EVs) even as it has granted exemptions to the solar industry.
Furthermore, exports and imports into the Export Processing Zones created by the Export Processing Zone Authority Ordinance are free from customs duties thanks to a government exemption. The Senate Committee voted to postpone discussion and request advice from the Board of Investment.
The Federal Minister for Finance and Revenue, Muhammad Aurangzeb, as well as committee members Senators Sherry Rehman, Mohsin Aziz, Anusha Rahman, Ahmad Khan, Shazaib Durrani, Farooq Hamid Naek, Fesal Vawda, and Manzoor Ahmed were present at the meeting, which was chaired by Senator Saleem Mandviwalla.
