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Summary
The Senate Standing Committee on Finance and Economic Affairs has ratified Finance Amendment Bill 2010 to impose the Reformed General Sales Tax (RGST) and flood tax. Finance Minister Hafeez Sheikh said that Pakistan was following IMF programme as the government was bound to fulfill promises made with international community. In the meeting of the Senate Standing Committee held in Islamabad, the committee chairman MQM Senator Ahmed Ali didnt participate while JUI, MQM and PML-N members were also not present in the meeting. In the presence of ANP members, the committee approved Finance Amendment Bill 2010 to impose flood tax. Special excise duty has also increase from 1 percent to 2 percent. The suggestion of 10 percent surcharge over payable tax has also been approved. RGST would not be imposed on education, health, medicines, eatables, stationary, milk and milk products. FBR chairman told the meeting that Rs 40 billion would be collected during Janurary 2011 to June 2011 after the imposition of flood tax. In the second session, only MQM members remained absent. PML-N and all other parties unanimously approved RGST. Talking in the meeting of the Senate about RGST, Hafeez said that he will not hide anything, tax want the problem of the government, instead it was the problem of the whole country and we have to correct the mistakes committed in the past. He said that taxes have to be imposed if facilities are to be provided to people. He said that the country was facing financial crunch since 2007 as rupee value started falling, foreign loans got increased and forex reserves fell instantly. There was no way, instead getting loan from IMF, he added. He said that IMF was not dictating the country but some method has to be chalked out to return the loans. He said that no new tax was being imposed, and politicians should avoid point scoring and the matter should be discussed in a positive manner. He said that no one wanted to pay taxes but time has come to get taxes from the affluent class.
