Senate unanimously adopts 144 recommendations

The Senate Wednesday unanimously adopted 144 recommendations made by Senate Standing Committee on Finance. The recommendations include increase in the tax rates for individuals, reduction in customs duty on the import of soybean oil and increase in petroleum development levy may be restricted to an increase of 25 percent over the existing rates.
Chairman of the Senate Standing Committee on Finance Farooq H Naek presented the report of the committee on Finance Bill 20018 before the Senate. The Senate has recommended to the National Assembly that for the tax rates of individuals, the tax rate for the slab of Rs 12,00,000 to Rs 24,00,000 be increased to 10%, the tax rate for the slab of Rs 24,00,000 to Rs 48,00,000 be increased to 15% and the tax rate for the slab of Rs 48,00,000 and above be increased by 25%.
It recommended that the increase in petroleum development levy as proposed in Clause 2 of the Finance Bill, 2018, may be restricted to an increase of 25 percent over the existing rates. The proposed import duty on soybean oil should be reduced even from the present value or it should remain as present. It recommended that health levy of Rs 10 per KG imposed on the sale of tobacco leaf should be withdrawn.
The Senate has recommended that the federal excise duty on domestic airline tickets should be reduced from Rs 3600 to Rs 1800 and taxes and duties on hybrid and electric cars should be identical. The Senate adopted that the commissioner Inland Revenue may not be allowed to reopen cases prior to ten years.
It has recommended to the National Assembly that in order to protect the dairy sector, tariff on import of skimmed milk powder (SMP) should be increased from 45% to 50%. In order to encourage the fishery sector exemption should be given on GST imposed on the import of "fish babies/seedlings" from 20% to 5%. The regulatory duty on fish fillet and frozen fish should be increased from 45% to 60%, it recommended.
The Senate has recommended that concessions given on agricultural machinery during Budget 2016-17 under S.No.1 of 5th Schedule to the Customs Act, 1969, should be continued. It has recommended the National Assembly that the membership of chamber of commerce and industry should be made compulsory for all businessmen in order to become a filer and for the better of tax system a central business data record system should also be established.
It has recommended the National Assembly that steps should be taken to introduce tax reforms for the promotion of industry in less developed areas. It has recommended that steps should be taken for the encouragement of tax payers and first 5000 taxpayers should be accorded status of VIP citizen and awards should be given to them in the national events.
The Senate has recommended National Assembly that the government should adhere to and implement the provisions of Fiscal Responsibility and Debt Limitation Act, 2005, and take steps to reduce the debt which is increasing rather than decreasing and putting the entire nation under heavy debt.
The Senate has recommended National Assembly that the mechanism should be evolved to bring non-filers into tax net to increase the government revenue. It has recommended that advanced tax and sales tax imposed on mobile phone cards of Rs 100 should be withdrawn. The Senate has recommended that the additional custom duty of 1% proposed to be imposed on industrial raw materials should be withdrawn.
The Senate has recommended to the National Assembly that the Session Allowance of Senate/Assembly employees should be de-frozen and restored at the rate of their running basic pays as it is not a regular allowance and only being given on a day to day basis for extended working hours before, during and after the sessions, and since it is granted only to employees of the Senate and National Assembly Secretariats in view of their long sitting hours and important work under short timelines. It recommended that sales tax on the import of plant & machinery for setting up refinery plants in the under-developed province of Balochistan should be exempted.
The sales tax exemption should be extended for dumpers and trucks used in the chromites and coal areas of Balochistan, it recommended. It recommended that customs duty in customs tariff code 8617.1219 (Mobile in CKD/SKD Condition) which is at present equivalent to the customs duty of Cellular mobile phones (CBU) should be suitably reduced. The regularity duty proposed to impose on CKD/SKD mobile kits should be rationalized.
It recommended that 10% regulatory duty on synthetic, polyester, acrylic and viscose and blend spun yarn under Chapter 55 of the HS Codes should be imposed. The Senate has recommended to the National Assembly that 11% customs duty on import of MDF may be retained while 5% RD imposed in the recent budget should be abolished.