Islamabad: Federal Finance Minister Senator Ishaq Dar presented the Finance Bill 2023 in the National Assembly, according to which it is proposed to increase the sales tax on luxury goods to 25 percent.
The Finance Supplementary Bill 2023 to be presented in the National Assembly The Prime Minister did not attend the House on the occasion. 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 flood.
The finance minister said that the Imran Khan government had signed an agreement with the IMF, he 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. This led to uncertainty between the IMF and Pakistan.
When the government took over, the country had a debt of 34 thousand billion, said the finance minister
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 percent. A change was made in 2018, which moved Pakistan from 20th to 47th in the world.
In the meeting which started about an hour late under the chairmanship of Speaker National Assembly Raja Pervez Ashraf, the finance minister advised the people to adopt simplicity. Investigate the reasons. 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 Finance Minister said that 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 as a result of the negotiations with the IMF, it has 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 up to 2467 billion.
The GST rate on various goods has been increased from 17 to 18 percent
According to the Finance Supplementary Bill 2023 presented by the Finance Minister, the rate of sales tax on luxury goods has been increased from 17 percent to 25 percent. The bill proposes a federal excise duty rate of 10 percent on the retail price of beverages, while the GST rate on various goods has been increased from 17 to 18 percent.
Proposed additional tax on mobile phones, air tickets, 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, while a proposal to increase the tax on mobile phones has also been included. Apart from this, there is also a proposal to impose 10% tax on the retail price of beverages along with advance tax on air tickets.
The supplementary finance bill proposes to increase the tax on cement by 50 paisa 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 10% advance tax under Section 236 of the CB.
Advance tax is also levied on marriage ceremonies, seminars and parties
The finance minister said that there will be 25 percent tax on luxury goods. The Finance Bill includes a proposal to levy 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 percent 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 10 percent excise duty on fruits, juices and other beverages, the proposal to impose 10 percent 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 has 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 on fertilizer. A discount is being given on 5 years old tractor. 75 thousand solar tube wells will be given to farmers.
The Prime Minister and the Cabinet will give a plan to reduce their expenses
The Finance Minister said that Prime Minister Shehbaz Sharif will 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, sports has been issued. 170 billion current and previous target of revenues will be fulfilled.
Finance Minister said that the most important thing today is to set a road map as one. We need to adopt national thinking for economic future, we have to sit together. It is hoped that the institutions will continue to receive full support. I will submit to everyone that we have seen 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 that this bill is not being sent to the Standing Committee.
Finance Supplementary Bill 2023 also presented in Senate
On the other hand, a Senate meeting was held under the chairmanship of 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 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 chair for the current session, in which Senator Umar Farooq, Senator Kushu Bai and Syed Ali Zafar are included in the panel of chair.
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