ISLAMABAD: The federal cabinet on Tuesday approved the Finance Supplementary Bill 2023 providing for a 1 percent increase in general sales tax (GST) and additional taxes on luxury items as part of the reforms related to ninth review of International Monetary Fund (IMF), ARY News reported.
According to details, the finance supplementary bill was passed in a cabinet meeting chaired by Prime Minister (PM) Shehbaz Sharif, who gave the directives not to tax any daily use items which could affect the poor or middle class.
During the briefing given to the prime minister, it was told that under the reforms, luxury items would be taxed.
The prime minister said the government was making maximum efforts to put the minimum possible burden on the poor people; however, he called for taking necessary measures to tax luxury goods.
The supplementary finance bill would now be tabled before the parliament on Wednesday as the president has already summoned the sessions of the National Assembly and Senate.
The prime minister said that an austerity policy would be adopted at the government level which would soon be formally announced as the economic difficulties could only be overcome while limiting ourselves within our resources.
He said all of the cabinet members and the government officers would be bound to adhere to the austerity package as it was inevitable to steer the country out of economic challenges.
He said the 220 million of Pakistan were bearing the brunt of the incompetence and negligence of the previous government.
“We assumed the power in difficult circumstances and sacrificed our politics for sake of the state. The previous government betrayed the people through its tall claims of simplicity and austerity,” he remarked.
The federal cabinet approved the renaming of the Turkiye Earthquake Victims Fund as Turkiye and Syria Earthquake Victims Fund with the prime minister urging the people to donate wholeheartedly to this fund.
The prime minister expressed condolence over the destruction caused by the unprecedented earthquake in Turkiye and Syria. He also apprised the cabinet members of his telephonic interaction with Turkish President Recep Tayyip Erdogan in which he assured Pakistan’s all out support to the quake-hit people.
He said the relief goods including blankets, warm clothes and others had been dispatched to Turkiye and Syria while more goods were also being sent there. The Pakistan Air Force, rescue workers, NGOs and philanthropists were also taking part in the relief activities, he added.
The federal cabinet endorsed the Economic Coordination Committee’s decisions it had taken in its respective meetings held on February 10 and 13, 2023. It also endorsed the decisions of the Cabinet Committee on Legislative Cases taken in its meeting held on February 9, 2023.
It should be noted here that President Dr Arif Alvi recommended the federal government pass the ‘mini-budget’ legislation from the parliament instead of an ordinance.
Read More: Mini-budget: Federal govt to pass Finance Bill from parliament
President’s objections
President Dr Arif Alvi has raised objections on the government’s bid to impose the ‘mini-budget’ recommendations through an ordinance.
Sources told ARY News that the federal government decided to impose an ordinance for implementing the budgetary recommendations.
The federal government is seeking approval from the president to sign an ordinance for the imposition of a mini-budget ordinance today.
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Following President Dr Arif Alvi’s objections, the government team mulled over the next strategy. Sources said that the president wants to approve the mini-budget-related legislation via a bill which should be presented before the parliament.
On the other hand, the federal government wants to immediately impose the legislation via an ordinance instead of passing a bill from the parliament to avoid spending more time.
Sources added that the government would contact President Alvi again to request him to immediately promulgate the ordinance after its approval from the federal cabinet. It was learnt that the budget-related ordinance cannot be tabled in the joint sitting of the parliament.
The federal government would be bound to seek the president’s order again for summoning another joint sitting with new agenda items after concluding the ongoing session. The federal government thinks the president would not summon the parliament’s joint session again if the ongoing sitting is concluded.
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