The finance minister of Pakistan Ishaq Dar introduced finance bill 2023 first in the National Assembly and then in the Senate. Both sessions are postponed till Friday 17. The bill contains the following points about an increase in GST from 17pc to 18pc. The GST on luxury items is to increase from 17pc to 25pc. The air tickets are business class, federal excise duty of 20pc of the airfare or RS 50,000 whichever is higher. The wedding halls advance tax is adjusted to keep 10pc. The increase in Federal excise duty on cigarettes, fresheners, and sugar drinks. Increase in Federal excise duty on cement from RS 1.5kg to RS 2kg. BISP budget increased to 400bn from 360bn.
In the national assembly, Dar explained the previous PML-N government’s progress and PTI efforts for the country’s progress. Dar said during previous Prime Minister Nawaz Sharif’s tenure GDP per capita increased while the Pakistan stock exchange market capitalization was $100 billion. During the PTI government, the PSX fall to $26bn showed a lack of interest for investors. The finance minister also explained the previous government failures by explaining 2017 to 2018 GDP growth had surpassed six percent, inflation was at 5pc, and food inflation at 2pc. The PTI government made the economy shrink because of inexperienced ministers in the government.
Dar said the country was facing two issues the fiscal deficit and the current account deficit. We are committed to controlling and reducing both deficits through the IMF program. The Foreign exchange reserves of Pakistan will increase and the value of the Rupee will become stable. Exports and remittances will improve and issues of LCs will terminate. The FBR hopes to collect the targeted tax. RS 170bn collected under the measures introduced in the finance bill would reduce the country’s fiscal deficit. Dar said every time presenting a finance bill had stressed the need for money.
Dar invites each political party to come and formulate a roadmap for Pakistan’s economy. He highlighted in 2013 country was at its peak point of defaulting when all politicians came together to change the direction of Pakistan. Once the minister wrapped up his speech the NA speaker said the bills would not be referred to the relevant standing committee under Rule 122 of the rules of procedure. The government was forced to head to parliament after President Arif Alvi advised the finance minister to take parliament into confidence instead of using an ordinance to bring into effect the RS 170 billion in new taxes. The president refuses the bill after that a meeting was held in which they approved the amendment of the bill.
