After President Dr Arif Alvi’s objections, the federal government has decided to pass the Finance Bill from the parliament which is also being termed ‘mini-budget’.
the Finance Bill will be presented before the National Assembly (NA) and the Senate during separate sessions on Wednesday (today).
The federal government accelerated efforts to immediately approve the Finance Bill to implement the conditions set by the International Monetary Fund (IMF) for the revival of the loan programme. The hurdles in the IMF agreement would be removed after the legislation.
It was learnt that the federal government will get approval from the parliament through the new legislation to impose Rs170 billion in new taxes.
In a relevant development, President Dr Arif Alvi summoned separate sessions of the NA and the Senate today under Article 54(1) of the Constitution. The NA session was summoned at 3:30 pm and the Senate’s session at 4:30 pm.
President Dr Arif Alvi has raised objections on the government’s bid to impose the ‘mini-budget’ recommendations through an ordinance.
The government is aiming to take drastic measures to deal with the IMF’s tax collection goals.
The main decision is said to be an increase in sales tax to 18%. This alone will amount to Rs50 billion in taxes.
Duty on luxury imports is expected to be raised to 25%, with the government hoping to save Rs60 to 70 billion.
The government is also aiming to add Rs10 to the levy on diesel. Cigarettes and plane tickets will also become expensive.