Ishaq Dar seeks hiking GST on luxury items from 17% to 25%, increasing in FED on soft and sugary drinks
ISLAMABAD
Fulfilling the IMF conditions, the Finance Minister Ishaq Dar on Wednesday presented Rs170 billion Finance Bill 2023 in the Lower House of the Parliament.
National Assembly session is being held under the chair of the NA Speaker Raja Pervez Ashraf. NA speaker said there would be no question-answer session in today’s session. Dar lashed out PTI government led by former premier Imran Khan or mishandling economic affairs of country.
He urged on the floor of the House for setting up a National Commission to probe who really damaged the economy of the country. Finance Minister said PDM government came into power last year and received poor economic conditions.
Addressing the floor of the House, Dar said the purpose of the bill was to give legislative effect to the taxation proposals of the federal government to stabilize the economy in the aftermath of the recent flood. The mini budget shall come into force on the next day of assent given to this act by the President Arif Alvi.
Main Points of Finance Bill 2023: Increases GST from 17 percent to 18 percent; GST n luxury items has been increased from 17% to 25%; Farmers to get Rs30 billion loans, Rs6.4 billion subsidy; Increases FED on first class and business class air tickets; Increases 2% duty on cement industry; Govt to receive 10% WTH on luxurious weddings; No increase in tax on daily commodities; Benazir Income Support Programme (BISP) to get Rs40 billion additionally; SBP set agricultural loans target to Rs1819 billion; Rs30 billion allocated for youth business loan scheme programme; PM, cabinet to take austerity measures; and PM Shehbaz Sharif to take nation into confidence on Finance Bill 2023.
A federal cabinet meeting with Prime Minister Shehbaz Sharif in the chair approved the Finance Bill 2023 that will impose phenomenal taxes in a bid to fulfil IMF conditions to revive the loan program. The bill worth over Rs170 billion is set to be introduced in parliament, for which separate sessions of the National Assembly and Senate have been called.
A session of the lower house has been summoned tomorrow for the purpose.
A scheduled press conference by Finance Minister Ishaq Dar to brief the media on the IMF program and proposed tax measures, was cancelled at the last moment.
Among other things, the finance bill proposes increasing GST on certain items from 16% to 17%. Even before any increase in taxes, cigarettes were reported to have become expensive in the market. The price of a pack of various brands of cigarettes hiked by Rs20 to Rs30.
Tax will also be levied on beverages, air tickets and bank transactions for non-filers. Duty on luxury goods has also been proposed. The cabinet also approved the decisions of the Economic Coordination Committee (ECC) for increasing gas and electricity prices, and a plan to manage circular debt.
Prime Minister Sharif already approved the recommendations of a committee earlier set up to suggest austerity measures in government offices. Finance Minister Ishaq Dar briefed the cabinet meeting about his meeting with President Arif Alvi in which the latter asked the minister to get the Finance Bill approved from parliament instead of implementing it through an ordinance.
He also briefed the meeting on the economic situation and took the PM into confidence on the affairs to be settled with the IMF, as well as the mini budget. Cabinet waives off electricity bills for flood-affected areas
The federal cabinet also approved a waiver of electricity bills for people in the flood-affected areas of Sindh, Balochistan and South Punjab. The meeting approved Rs10.34 billion subsidy for consumers of the flood-hit areas for August and September 2022. Only consumers utilizing up to 300 units of electricity would be able to avail the facility.
