The Senate Committee on Finance and Revenue on Monday unanimously rejected the federal government’s proposal to increase taxes on salaried class in the Finance Bill 2024.
After reviewing the report presented by the apex finance committee, the Senate has proposed 128 recommendations to the National Assembly for inclusion in the Finance Bill 2024 including nine public sector development programs (PSDP) for next fiscal year.
Chairman Senate Standing Committee on Finance Saleem Mandviwalla presented the budget recommendations. Of the 128 recommendations, 69 were general budget recommendations for FY25 while others included eight changes to the Customs Act, 1969, 23 to the Sales Tax Act, 1990, 15 to the Income Tax Ordinance, 2001, three to the Federal Excise Act, 2005, and one on Abandoned Properties.
The committee unanimously rejected the federal government’s proposal to tax the salaried class, particularly the lower income bracket. Taxes on infant milk and other dairy products, poultry feed, cheaper mobile phones, and stationery items, including children’s textbooks and pencils were also rejected.
Mandviwalla explained that out of the total Rs. 18.9 trillion budget for FY25, Rs. 9.75 trillion would be allocated for interest and debt repayments, with Rs. 2.63 trillion to be borrowed to cover the budget deficit. He urged tax authorities to bring 2.9 million non-filers into the tax net to increase revenue.
The committee proposed special allowances and negotiations to address the concerns of disabled persons who were ignored in the budget.
Mandviwala said the panel proposed giving incentives to charity hospitals and to tax those facilities charging fees for their services.
The committee also opposed the withdrawal of the proposed taxes on school books and stationery items.
Mandviwalla urged the House to avoid politicizing economic issues, warning that continued politicization could worsen future budgets.
Follow ProPakistani on Google News & scroll through your favourite content faster!
Support independent journalism
If you want to join us in our mission to share independent, global journalism to the world, we’d love to have you on our side. If you can, please support us on a monthly basis. It takes less than a minute to set up, and you can rest assured that you’re making a big impact every single month in support of open, independent journalism. Thank you.
