Page 12 - Pakistan Link - December 31, 2021

P12 – PAKISTAN LINK – DECEMBER 31, 2021 PAKISTAN
17 Per Cent Tax on Number of Items Proposed, ‘Don’t Sell Pakistan’: Opposition up

Shaukat Tarin Dismisses Inflation Fears in Arms as Govt Tables ‘Mini Budget’

sales tax exemption will
continue on pesticide and
tractors will continue to
be sold at 5pc tax rate.
Federal excise duty
on imported and locally
manufactured/assembled
vehicles is proposed to be
increased on the recom-
mendations of the Tar-
iff Policy Board and the
Ministry of Commerce.
Advance tax on cellular
services is proposed to be
increased from 10pc to
15pc, while withholding
tax is proposed on foreign
produced TV serial/dra-
mas and advertisements
with foreign actors.
Finance Minister Shaukat Tarin addresses a press conference in Islamabad alongside Minister of Tax on transfer of “You’re giving SBP’s control to IMF. Please have mercy on the people of Pakistan. Don’t
State for Information to explain the salient features of the Finance (Supplementary) Bill 2021 newly purchased vehicles sell Pakistan. You allowed people to loot the country for three years,” Kh Asif said
has been increased to dis-
Islamabad: Finance from the pharma sector. sales tax imposed on the courage the practice of Islamabad: Finance Minister Shau- about surrendering the sovereignty
Minister Shaukat Tarin The bill proposes items used by common own-money. Exemptions kat Tarin on Thursday presented the of Pakistan, he said: “A Pakistani
presented in the National 17pc sales tax on a num- people would yield only available to REIT have Finance (Supplementary) Bill 2021 leader is speaking about surrender-
Assembly on Thursday the ber of items which were Rs2bn for the govern- been extended to special — or the mini-budget as the oppo- ing the country’s sovereignty. I call
Finance (Supplementary) earlier exempted from ment. These items include purpose vehicles set up sition calls it — in the National As- that shameful.”
Bill 2021 envisaging with- the tax. The government personal computers, sew- under a REIT. sembly (NA) amid uproar from the He also lambasted the opposi-
drawal of sales tax exemp- terms these products lux- ing machines, match box- Pharmaceutical firms opposition benches. tion for criticizing the government
tions worth Rs343 billion ury items which include es, iodized salt, red chili have been equated with The bill was originally sched- over national security.
on machinery, pharma import of live animals, and contraceptives. exporters for purposes of uled to be presented in parliament “They invited [Indian Prime
and imported food items. steak meat, fish, veg- Tax exemption is release of refunds within on Wednesday but the cabinet had Minister Narendra] Modi to their
The bill also proposes etables, high-end bakery retained on basic food 72 hours. Therefore, phar- deferred its approval after a “thread- house,” he said, making an apparent
an increase in rates of fed- items, branded cheese, items — import and sup- ma firms will now be able bare discussion” on it. reference to PML-N supremo Nawaz
eral excise duty, income imported sausages, high- ply of rice, wheat, meslin, to claim refunds on GST The bill’s approval is necessary Sharif.
tax and sales tax on ser- end cellphones and im- and local supply of other paid as input tax on pack- to ensure Pakistan’s sixth review of When it was his turn to speak,
vices in the federal capital port bicycles. grains. Exemptions con- aging material, utilities, the $6 billion Extended Fund Facil- PPP leader Raja Pervaiz Ashraf said
territory. At the same time, a tinue on local supply of etc., which they previously ity gets cleared by the International in the last NA session, which was
Mr Tarin explained number of items is pro- fruits, vegetables, beef, could not — having price Monetary Fund’s executive board on chaired by Deputy Speaker Qasim
that sales tax on machin- posed in the bill for tar- mutton, poultry, fish, eggs, tag of Rs35bn. January 12, paving the way for the Suri, he had told the chair that there
ery and pharma sector is geted subsidy to minimize sugarcane and beet sugar. Expectedly, the prices disbursement of about $1bn tranche. were reports of the government pre-
adjustable and refund- of medicines in the re- Speaker Asad Qaisar said the senting a “mini-budget” in the as-
able. He said the levy of 17 tail market should come bill will not be forwarded to the sembly.
per cent sales tax on sev- down, approximately by standing committee concerned. He “I had said that it will make life
eral hundred items, which 20pc. said there would be a debate on the more difficult for the people of Paki-
would directly or indirect- The finance minister bill in the NA, following which the stan, but the chair had dismissed my
ly affect the people, would in a briefing to the media House would vote on it. concerns,” Ashraf said. “When, in
raise around Rs71bn for said those crating a hue The State Bank of Pakistan fact, that was the time for the oppo-
the national kitty. and cry over the supple- (SBP) Amendment Bill 2021 was sition to speak on the matter.”
The withdrawal of mentary finance bill and also presented in the House, which He further complained that
tax exemptions includes the State Bank Pakistan was referred to the relevant standing when the bill was presented in the
Rs31bn on luxury goods (SBP) autonomy bill were committee for necessary vetting. day, even then the opposition was
and Rs31bn on business only politicizing the tech- Speaking on the occasion, not being heard.
goods. nical matter without any PML-N leader Khawaja Asif said: The PPP leader also said that in
rationale. He also high- “You’re giving SBP’s control to IMF. his response to Asif, Umar had not
“Elites, not the com- lighted the importance Please have mercy on the people of addressed any of the questions and
mon man, are beneficiary of the SBP autonomy and Pakistan. Don’t sell Pakistan. You al- issues raised by the PML-N leader.
of these exemptions,” Mr said it was essential for lowed people to loot the country for “He (Umar) failed to satisfy this
Tarin said, adding that tax the overall growth of the three years,” he said, making a refer- House,” Ashraf added.
exemptions of Rs343bn country’s economy. ence to the State Bank of Pakistan He urged the speaker to reject
had been benefiting vari- The minister said the (SBP) Amendment Bill 2021 — an- the day’s proceedings so that oppo-
ous interest groups for the allegations being levelled other legislation needed to ensure sition and treasury members could
past 70 years. “We have against the government the disbursement of $1bn tranche by present arguments on the matters
targeted only those items were baseless because not the IMF. taken up in the session anew.
which are used by the every suggestion of the He urged the House to not let Foreign Minister Shah Mehm-
elites.” IMF had been accepted Pakistan surrender its sovereignty. ood Qureshi said the opposition had
However, Mr Tarin in the SBP autonomy bill. “Surrendering Pakistan’s eco- the right to present its point of view,
said the levy of 17pc sales “We need to understand nomic sovereignty is more danger- however, “the government’s job is to
tax on some specific items that all those countries, ous than that of the surrender in put forth facts before people”.
would raise Rs2bn, adding which have not granted 1971,” he said while referring to the As Qureshi continued to speak,
that the tax on these items the impact of 17pc sales Similarly, zero rating on independence to their East Pakistan debacle. the opposition members pointed
would only affect the or- tax. These include oilcake, milk and fat-filled milk is central banks, like Turkey, He said the whole nation was towards an incomplete quorum in
dinary people. “We have animal feed, poultry feed, also retained. have suffered.” ashamed of what was happening in the House. Responding to the op-
only increased the cost of maize seed (for corn oil) The exemptions on Mr Tarin clarified the parliament. position’s objection, the speaker ad-
imported luxury items,” and cottonseed (for oil vegetables and fruits from that there were no con- In response to Asif’s speech, journed the session till Dec 31.
he said, adding that local mills). Other items that Afghanistan is also main- stitutional amendments Planning and Development Minister Earlier in the day, a meeting of
supply of most items re- will now attract 17pc tax tained. Education text- in the SBP autonomy bill, Asad Umar said the opposition had the parliamentary groups of parties
mained unchanged. on import are magazines books, stationary items and it had been approved been trying to “scare the nation” by included in the ruling alliance led by
The minister ex- and fashion journals. and locally manufactured with a simple majority making a hue and cry over the SBP the PTI on the issue of the bill’s pas-
plained that withdrawal of The targeted subsidy laptops and personal only. “If we feel that the amendment bill. sage was also held.
tax exemptions worth Rs- plan of Rs33bn has been computers will remain ex- State Bank is getting out “The difference between them Ordinances extended: The
112bn on machinery and proposed to protect any empted from sales tax. of hand, a simple majority and us is that when they work to House also adopted multiple resolu-
Rs160bn on pharmaceu- segment of population In the agriculture is required to finish these curb dengue, they have to advertise tions, extending the validity of sev-
tical sector is adjustable which may get affected sector, the reduced rate amendments.” about it themselves. But when we eral ordinances for a period of 120
and refundable. He did even indirectly by the of 2pc on fertilizer at out- He said the main work to curb Covid-19,” interna- days. Earlier, Prime Minister Imran
not consider these as taxes withdrawal of some ex- stage will continue, along purpose of granting au- tional forums praise the Pakistan Khan was dismissive of the opposi-
which will now be collect- emptions, etc. with multiple reduced tonomy to the State Bank Tehreek-i-Insaf-led government, tion’s claim that the government was
ed at the rate of 17pc on According to the fi- rates on fertilizer inputs was to end government Umar added. in danger, saying “they make such
import of machinery and nance minister, the 17pc as currently available. The borrowings. Reacting to Asif’s remarks statements every three months.”
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