275 recommendations with major amendments made in Finance Bill 2017
ISLAMABAD: The Senate has made 275 recommendations to the National Assembly with major amendments in the Finance Bill 2017 including special package of Rs 20 billion to revive Karachi’s infrastructure and boost development, realistic targets for Federal Board of Revenue (FBR), 3 percent National Finance Commission (NFC) award for Federally Administered Tribal Areas (FAFA) and restructuring of PIA, WAPDA, PEPCO, Pakistan Steel, Pakistan Railways and other state-owned enterprises (SOEs).
On Thursday, the Senate made these recommendations to the National Assembly for consideration through amendments in the Finance Bill 2017. The recommendations made by the Upper House of the Parliament will now be presented in the National Assembly.
According to the recommendations for budget (2017-18), the Senate has recommended to the National Assembly that the inputs/outputs of educational stationery should be zero rated from sales tax under the Fifth Schedule to the Sales Tax Act 1990.
The Senate has recommended the National Assembly that import of five year reconditioned/old cars may be allowed, 50 % tax on non-filers be increased further by 10%, strict measures be taken to collect tax in real estate related business and brought under tax net and 0.2 percent advance tax on manufacturers from dealers/distributors/wholesalers from non-filers, whereas 0.5 percent advance tax from retailers on sale of batteries shall be withdrawn.
The Senate recommended to the National Assembly that in order to make fertilizer available at reasonable prices, the general sales tax on all types of fertilizers may be abolished or reduced.
The Senate has recommended the National Assembly that the following explanation may be inserted by amending Clause (2), sub-clause (1) of the Fiscal Responsibility and Debt Limitation Act, 2005:-
“Explanation – Total Debt of the Government is public debt less accumulated deposits of the federal and provincial governments with the banking system.”
The Senate has recommended the National Assembly that the tariff on agricultural tube-wells may be rationalised and uniform tariff be evolved to ensure enhanced agricultural productivity.
The Senate has recommended National Assembly that the GST on the imported new combined harvester and planters may be abolished and duty and taxes should be zero rated on imported cool chain machinery/ equipment.
The Senate has recommended National Assembly that duty and taxes on imported tractors should be zero rated; sales tax on supply of locally manufactured tractors be reduced from 5% to 2% and GST on locally manufactured diesel engine and custom duty and sales tax on its imported components may be abolished.
The Senate has recommended the National Assembly that the duty on import of grand/parent stock and hatching eggs may be reduced to 3 percent, import duty may be reduced to 3 percent on poultry feed additives (vitamins, premixes, enzymes etc.) in order to encourage poultry industry and exemption of sales tax on the poultry sector may be continued in order to encourage and providing incentives to the poultry sector.
The Senate has recommended the National Assembly that in order to encourage the dairy and livestock sector, the inputs cost sales tax should be reduced from 17 percent to 10 percent, sales tax should be exempted on veterinary medicines, 20 percent GST on the fish feed may be abolished and import duty on the fish fillet and frozen fish be increased to 30 percent in order to encourage the local fish industry.
The Senate recommended the National Assembly that a budget of 20 billion rupees be allocated on emergency basis for construction of medium and small size dams as the water level has fallen down to a intricate level at Quetta, Pishin, Zhob, Sherani, Qila Saifullah, Ziarat, Harnai, Barkhan, Musakhel, and Loralai Districts of Balochistan.
The Senate has recommended National Assembly that in order to widen the tax net, the procedure for submissions of tax returns be made simple; acquisition of NTN Number be made compulsory for current business class international travellers; extra tax be charged on the tickets of the business class international travellers who have not submitted their tax returns and persons who have submitted the new returns be exempted from audit for a period of three years.
The Senate has recommended the National Assembly that the customs duty of 20% on electric cigarettes and betel nuts be further increased by 10%.
The Senate has recommended the National Assembly that a special package of Rs 20 billion to revive Karachi’s infrastructure and boost development, be made.
The Senate has recommended the National Assembly that allocation of Rs 1 billion may be made for Karachi water supply project in order to resolve the problem of grave water shortage.
The Senate recommended to the National Assembly that the incomes from all sources including from agricultural produce may be brought under the tax net so as to generate revenue for sustainable economic development. The proposal pending with Council of Common Interest with regard to uniform tax on agricultural income be finalized. Necessary legislation be carried out.
The Senate recommended the National Assembly that the federal government may introduce reforms to establish good governance, curb corruption, collect taxes efficiently and plug leakages so as to broaden the tax base.
The Senate recommended the National Assembly that the Federal Government may take immediate measures to plug leakages and corruption in Public Sector enterprises in order to eliminate the current annual losses of over Rs.500 billion.
The Senate recommended the National Assembly that PIA, WAPDA, PEPCO, Pakistan Steel, Pakistan Railways and other SOEs may be re-structured and operated under public private partnership strictly by professionals appointed on merit.
The Senate recommended the National Assembly to adopt an effective strategy to get rid of all domestic and international loans, and a timeframe should be given in Budget 2017-18, and an announcement should be made that no further loans shall be acquired.
The Senate recommends the National Assembly that small dams should be built in the provinces, and the amount allocated under this head should be at least tripled, so that along with water conservation people are provided cost-effective hydel electricity.
The Senate recommends the National Assembly that the funds required for projects like circular railway, and Green line Bus in Karachi should be allocated and work should be started on priority basis. Funds for construction of Malir Expressway on Malir River way should be allocated, and work on this project should be started immediately.
The Senate recommends the National Assembly that the profit on National Saving Certificates, Special Saving Certificates, Bahbood and Pensioners accounts be raised by 2% to benefit old age pensioners, widows and retired persons.
The Senate recommends the National Assembly that House rent ceiling of the Federal Government Officials/Officers be increased @ 100% as the same has not been revised from the year 2014.
The Senate recommends to the National Assembly that allowances of the Federal Government Officers/Officials may be de-freezed since the same were freezed in the budget year 2016-2017.
The Senate recommended National Assembly that the Federal Government may introduce appropriate reforms in FBR in order to curb the reported leakages and corruption.
The Senate has recommended the National Assembly that Customs Duty under PCT heading 8507.2010, 8507.2090, 8507.8000 and 8507.9000 shall be imposed at the rate of 25 percent.
The Senate has recommended the National Assembly that the government should set realistic targets and hold the FBR responsible for underperformance, furthermore, all whole-sellers, retailers, service providers, foreign travellers, luxury car owners, house owners be brought into tax net.
The Senate has recommended the National Assembly that the steps should be taken for concession in the fees of disabled persons in private and public sector educational institutions and all import and customs duties on mining and farm machinery for farmers and local mining companies should be withdrawn in order to enhance the productivity and quality.
The Senate has recommended the National Assembly that the import of inputs used for manufacturing of goods to be supplied against international tender shall be zero rated.
The Senate has recommended the National Assembly that central excise duty on edible oil should be increased from 16 percent to 21.5 percent as well as 1 percent income tax should also be imposed on Industry at import stage, which should be the final tax liability.
The Senate has recommended the National Assembly that Active Tax Payers List (ATL) should also be applicable in the areas of AJ&K and Gilgit-Baltistan, custom duty on aluminium coil (7606.1200) should be reduced, 10 percent regulatory duty should be imposed on wires and cables PCT codes 75:14, 7614.1000, 7614.9000, 85.44, 8544.4920, 8544.4990 and 8544.6000 and income tax shall be reduced from 5.5 percent to 2 percent on Industry without exemption certificate whereas 4 percent final tax should be imposed on Commercial Importer, on the import of plastic raw material.
The Senate has recommended the National Assembly that all the notifications and orders issued and notified in exercise of the powers conferred upon the federal government before the commencement of the Finance Act, 2017 should be validated in the forthcoming meeting of the Cabinet.
The Senate has recommended the National Assembly that the government should avoid incorporating procedural changes in the Finance Bill.
The Senate has recommended the National Assembly that Rs 12 billion as full and final settlement of GIDC outstanding of CNG sector for the period from 15th December 2011 till May 2015 shall be settled. Furthermore, 4 billion rupees shall be settled within thirty working days from the passage of federal budget 2017-18 and 8 billion rupees shall be recovered in installments in financial year 2017-18. Current GIDC outstanding of CNG sector for period starting from June 2015 till 16th December 2016, shall be taken up by Senate Standing Committee on Finance and Revenue for settlement, after which all court cases shall be withdrawn by CNG sector.
The Senate has recommended the National Assembly that the bank attachment orders and raids should be made with the prior approval of Member concerned of Federal Board of Revenue (FBR) under all the tax laws.
The Senate has recommended to the National Assembly that immediate and dedicated work should be started on the pending agreements of Pakistan-Iran on Natural Gas and Electricity projects.The Senate has recommended the National Assembly that PSDP should be reviewed and re-appropriated according to Article 156(2) of the Constitution of the Islamic Republic of Pakistan in order to make appropriate allocation for completing the started projects in provinces.