The Senate on Monday proposed 55 recommendations related to Finance Bill 2023 and gave 31 recommendations regarding the public sector development program.
The recommendations on the Finance Bill, 2023 would be forwarded to National Assembly which would decide whether or not these recommendations are to be incorporated into the Money Bill. In the session of the upper house of the parliament on Monday, Senator Saleem Mandviwala, Chairman of the Senate Standing Committee on Finance, presented the Senate’s budget recommendations. The Senate recommended to National Assembly that tax of 12 percent of the sale on retailers and brands who are registered with FBR should be maintained, instead of increasing it to 15 percent.
For filers, it was proposed that e tax on credit card transactions should be increased from 1% to 5%, and for non-filers and 2% to 10% for non-filers to be maintained at previous rates. Under the laptop scheme, mandatory technical training should be provided to those who purchase laptops so that they can earn income through online businesses. It has been proposed to gradually impose taxes on the real estate and agricultural sectors. Government institutions working in loss should be audited, and reform action should be taken against institutions like Pakistan Steel Mills, which have been incurring heavy losses for years. Income-generating industries should be given tax exemptions and provided with gas supply. It has been proposed to establish tax-free zones for foreign direct investment and rationalize the subsidy mechanism for seeds, fertilizers, solar energy devices, and essential food items.
The Senate proposed to ensure the availability of all items at discounted prices in utility stores, allocate funds for the National Development Volunteer Program in the 2023-24 budget, increase the allocated budget for the healthcare sector and remove customs duties on income from lawn tennis rackets, badminton rackets, squash rackets, lawn tennis balls, squash balls, table tennis balls, badminton shuttlecocks, and basketballs.
The Senate has recommended that the super tax implemented or imposed since 2015 should be abolished or withdrawn. The Senate has recommended not to block company bank accounts without prior notices and remove barriers in the refund funds of income tax and sales tax.
It has been further proposed to declare generators with a capacity of up to 2 kilowatts as tax-free while refunds of input tax should be eligible for reimbursement at a rate of 5 percent for the IT sector and shares of IT sector companies should be exempted from capital gains tax. The Senate proposed to take effective measures for the development of renewable energy sectors in the country and promote skill development. It suggested to increase the television fee collected in electricity bills from Rs. 35 rupees to Rs. 50 per month and allocate an additional Rs.15 rupees for Radio Pakistan to meet its financial needs. It suggested to designate Gwadar as a tax-free zone and release remaining funds for the Gwadar Development Authority. The Senate proposed that steel mills should be allowed to purchase local scrap and reduce the withholding tax rate on scrap supply to 0.25%.
It recommended to allocate Rs. 104 billion for regional competitive energy tariffs in future budgets and abolish federal excise duty for the juice industry besides exemption on agricultural sprayers from taxes. The Upper House (Senate) suggested to allocate appropriate funds for the rehabilitation of flood-affected individuals.
