News Desk
ISLAMABAD: A National Assembly session began to pass a crucial tax amendment bill to fulfill the International Monetary Fund (IMF) conditions to revive a stalled loan program Pakistan needs to stave off default, where the country’s finance minister Ishaq Dar set into motion the Finance (Supplementary) Bill 2023.
In his speech to the lower house of parliament, Ishaq Dar, while comparing the performance record of the past PML-N and PTI governments, said that during former premier Nawaz Sharif’s tenure, the GDP per capita increased while the Pakistan Stock Exchange’s (PSX) market capitalization was $100 billion.
However, the PSX’s market capitalization declined to $26bn during the PTI government, adding that the decrease showed a lack of investor confidence in the previous government.
Dar also criticized the PTI government for increasing the country’s debts significantly.
“In 2017-18, GDP growth had increased to over six percent; inflation was at 5 percent, food inflation at 2 percent. Following the 2018 elections, a selected government came into power. Because of its failures, Pakistan’s economy shrunk,” he said.
Dar then moved on to the relevant amendments he was proposing, including an increase in federal excise duty on cigarettes and fizzy drinks, an increase in federal excise duty on cement from Rs1.5/kg to Rs2/kg, and a GST increase from 17 percent to 18 percent.
He also said that Benazir Income Support Program (BISP) handouts increased to Rs400 billion from Rs360 billion.
Finance Minister on taxes
He said that the federal excise duty on cement would be increased from Rs1.5 to Rs2 per kg, air travel tickets would be taxed in advance, and tax on luxury items would be raised from 17 percent to 25 percent.
Dar added that a 10 percent withholding adjustable tax would be imposed on the marriage functions bills.
However, he said that the basic necessities like wheat, rice, pulses, and other items would be exempted from taxes.
During his speech, Dar hoped GDP would grow by 4 percent next year.
He also spoke about the Kissan Package, saying that the government has allocated Rs1,819 billion until June 2023.
Moreover, the finance minister said that the government would provide Rs30 billion in loans this year and adopt austerity measures. Prime Minister Shehbaz Sharif and the federal cabinet would reduce their expenditures to save the much-needed state resources.
