Senate proposes 50% cut in indirect taxes

Suggests direct tax on sugar, cement, tobacco, fertiliser industry

ISLAMABAD:

The Senate on Monday proposed a total of 128 recommendations, including nine about the public sector development programme (PSDP) for the year 2024-25, to the National Assembly for inclusion in the Finance Bill 2024.

The recommendations on the Finance Bill, 2024, will be forwarded to the National Assembly which will decide whether or not these recommendations are to be incorporated in the Money Bill.

Out of a total of 128, some 69 were related to general recommendations on the budget 2024-25, eight related to the Customs Act, 1969, 23 related to the Sales Tax Act, 1990, 15 about Income Tax Ordinance, 2001, three regarding the Federal Excise Act, 2005 and one related to Abandoned Properties.

Chairman of the Senate Standing Committee on Finance Saleem Mandviwala presented the Senate’s budget recommendations which were adopted by the House.

The upper house recommended raising the minimum wage from Rs37,000 to Rs45,000 and providing an extra allowance equivalent to 100% of their basic pay for disabled persons. They also suggested broadening the tax base and reducing the tax burden on the salaried class.

It further recommended withdrawing the 10% GST on newsprint imports and restoring the zero-rated status for the print industry. They also proposed withdrawing the sales tax on poultry feed to avoid increasing poultry product prices, which would affect consumers.

Additionally, the Senate suggested reversing the increase in the petroleum levy on petroleum products.

They also suggested reducing the Rs7,458 billion in indirect taxes, including sales tax, excise duty, customs duty, and service tax, by 50% to lower the prices of essential goods and food items for the poor.