Ahmed Mukhtar Naqshbandi
ISLAMABAD: The National Assembly Monday unanimously approved the government’s much-needed mini-budget (finance bill), a move mandatory for seeking a $1.1 billion tranche of the International Monetary Fund (IMF) loan.
Federal Minister for Finance and Revenue Ishaq Dar tabled the bill in the National Assembly and Senate on 15 February with budget proposals presented trying to fulfill the prerequisites for unlocking the crucial 1.1 billion-dollar IMF loan tranche which will help cushion Pakistan’s dwindling economy.
A session of the National Assembly, to debate the mini-budget, was held on 17 February, however, it was adjourned without voting after a brief debate on the proposals.
The session has been adjourned to meet again on Monday, the 20 February at 5:00 pm.
Finance bill proposals
Increase in GST on luxury items from 17% to 25%
FED on business and first-class air tickets be increased to Rs20,000 or 50% — whichever is higher
10% withholding adjustable advance income tax to be imposed on marriage halls
Increase in FED on cigarettes, soft and sugary drinks
FED on cement to be raised from Rs1.5 kg to Rs2 kg
Increase in GST from standard 17% to 18%
GST to not be imposed on essential goods — wheat, rice, milk, pulses, vegetables, fruits, fish, eggs, meat
BISP stipend to be increased; government to allocate Rs400 billion for the program.