The federal government has been forced to head to parliament after President Arif Alvi ‘advised’ Finance Minister Ishaq Dar on Tuesday to take parliament into confidence over the Rs 170 billion in new taxes that are being levied.
As per the agenda, the National Assembly will meet at 3:30pm and Finance Minister Senator Ishaq Dar will present the Finance Supplementary Bill, 2023 in the lower house.
A session of the Senate has also been summoned at 4:30pm to move the bill there as well so the document can be sent to President Dr Arif Alvi immediately for assent.
Prime Minister Shehbaz Sharif, who didn’t attend the last session, will be present during today’s meeting.
The government had initially planned to introduce “tax and non-tax measures” to generate funds to the tune of Rs 170 billion. However, in a last-minute change, it decided to drop proposals pertaining to non-tax measures, particularly the flood levy to the tune of Rs 100 billion.
In a late-night development, the Federal Board of Revenue (FBR) issued SRO178 to enhance a federal excise duty on locally manufactured cigarettes which would generate up to Rs 60 billion in taxes on tobacco products.
The government will generate Rs 55 billion more through a 1 per cent increase in GST – from 17pc to 18pc. The remaining Rs 55 billion will be collected through an increase in excise duty on airlines tickets, sugary drinks and an increase in withholding tax rates.
Dar had called on President Alvi to apprise him about the talks with the IMF for the revival of the programme.
The government decided to approach the Parliament after President Dr Arif Alvi gave the government a cold shoulder on bringing the mini-budget via an ordinance in his meeting with Dar.
“The president advised that it would be more appropriate to take parliament into confidence on this important subject, and that a session be called immediately so that the bill is enacted without delay,” a statement issued by the President House said after the meeting.
