NA panel’s chair: Opposition, allies call for ouster of Fauzia Wahab

Government appears to be losing the reformed general sales tax (GST) battle in a parliamentary panel.

ISLAMABAD: The government on Friday appeared to be losing the reformed general sales tax (GST) battle in a parliamentary panel – courtesy a second consecutive adjournment of the session.

The opposition and the government’s allies joined hands to remove Fauzia Wahab from the position of chairperson. Nine members from PML-N, PML-Q, JUI-F, ANP and the MQM have filed an application to the National Assembly speaker office to remove Wahab from the post.

The latest development may cost the government two crucial votes of the JUI-F and ANP in the 17-member National Assembly standing committee.

The “irritating attitude of PPP secretary information may deprive the government of the crucial support of the ANP and JUI-F” to get the bill passed from the committee, warned a committee member from an allied party. The committee is debating the reformed GST bill, as its approval before December 31 is imperative for the resumption of the $11.3 billion IMF programme.

The third session of the panel abruptly turned into a battleground when Wahab overreacted to MNA Kashmala Tariq’s statement. While seeking an explanation about the exact revenue impact of the reformed GST bill, Tariq quoted the minister of state for finance as saying on a TV channel that the government would collect Rs22 billion in six months.

“In the committee proceedings, the minister did not make ‘chuun’ (say anything) about its impact and on the TV she was giving a number which contradicts what the trade bodies claimed here,” said Tariq.

Wahab said the word ‘chuun’ was un-parliamentary, and therefore be “expunged from the proceedings.” Tariq, along with other members, protested, claiming the word ‘chuun’ was not un-parliamentary. When the members protested, Wahab adjourned the meeting.

“Get out of this committee if you cannot manage it,” said Shahid Khaqan Abbasi of the PML-N who mostly remains sober and talks on issues above the party line. “[Wahab] runs the committee like a dictator and we will not support that,” said Bushra Gohar of the ANP.

Tariq said the chambers and trade bodies were claiming that the government would collect over Rs200 billion through GST. The government should give a clearer picture to the committee so the members can take a position on the bill, she added.

The ANP also put the government on hot burner when it warned it would not support the reformed GST bill if it was not implemented in the Federally Administrated Tribal Areas (Fata).

Gohar also came down hard on the government for negotiating a deal with Fata MNAs, aimed at getting their support for the bill. “The president and the prime minister should not hold meetings to win support when the committee is deliberating the bill,” Gohar added. The prime minister held a meeting with Fata MNAs on Thursday and announced a development package that was widely perceived as a “bribe” for their support to the bill.

The committee members also criticised the prime minister’s statement that the GST will reduce inflation. “If the prime minister gives a guarantee that the tax imposition will result in reduction of inflation, I assure you that my party will support the bill,” said Makhdoom Faisal Saleh Hayat of the PML-Q.

“The FBR never said that the GST imposition would not result in inflation. It will add to a certain spurt in inflation,” said Sohail Ahmad, Chairman of the Federal Board of Revenue.

Published in The Express Tribune, December 4^th, 2010.