Senate forwards 150 budget recommendations to NA

ISLAMABAD: The Senate Wednesday approved nearly 150 recommendations to be forwarded to the National Assembly (NA) for consideration and possible adoption, recommending 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 Senate of Pakistan recommend that visible steps should be taken for expediting disposal of the matter regarding interest based economic system pending before the Federal Shariat Court and that the advanced tax and sales tax imposed on mobile phone cards of Rs100 should be withdrawn.

The recommendations were tabled in the House by chairman of the Senate committee on finance Senator Farook H Naek and adopted. It was recommended that the penalties proposed in Clause 5, sub-clause (41) are too harsh, which should be rationalized.

The Senate recommended to the National Assembly that in Clause 5, sub-clause (25), in paragraph (ii), the Commissioner may not be allowed to reopen cases prior to ten years. Likewise, for the tax rates of individuals the slab of Rs12,00,000 to Rs24,00,000 the tax rate be increased to 10%, slab for Rs24,00,000 to Rs48,00,000 the tax rate be increased to 15% and the slab for Rs48,00,000 and above be increased by 25%.

It was recommended to the National Assembly that steps should be taken for the encouragement of tax payers and first 5000 tax payers should be accorded status of VIP citizen and awards should be given to them in the national events.

The Senate recommended to the 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.

It was also recommended that the amount collected as tax on cigarettes should be spent in the health sector. The Senate recommended to the National Assembly that the allocations in the PSDP for the provinces should be placed before the Senate at least two months before the finalization of the budget so that the Members of the Upper House may have an opportunity to fully participate in relation to the allocation of PSDP. Moreover, the proposals may be invited for the perusal of the Upper House at least three months before finalization of the budget for inclusion of schemes in the PSDP.

The Senate of Pakistan recommended to the National Assembly that conversion of existing 10,000 electrically operated tube wells in Balochistan to solar power 25% be allocated and in 4 years this project should be completed. The Senate recommendedthat Rs 20 billion be allocated for small and medium size dams for the falling water level in Quetta, Pashin, Zhob, Sherani, QillaSaifullah, Ziarat, Harnai, Barkhan, Musakhel,Daki and Loralai district of Balochistan. The Senate recommended that funds be allocated to waive off loans of poor farmers and land owners of Balochistan amounting approximately Rupees 2.75 billion in the current fiscal year.

Meanwhile, in response to a calling attention notice by former Chairman Senate Mian Raza Rabbani on transfer of funds of the Employees Old Age Benefits Institution to Pakistan Baitul Mal, Climate Change and other ministries and departments of the federal government, Minister of State for Finance Rana Muhammad Afzal said that funds were transferred seven times during PPP rule from 2008 to 2013.

Speaking on a calling attention notice, Rabbani lambasted the government for transferring the EOBI funds to Pakistan Bailtaul Mal (PBM) and Climate Change Ministry, saying shifting such a huge amount meant for the pension of poor workers, is a criminal breach of trust by the federal government.

He pointed out that EOBI has been devolved to the provinces under 18th Constitutional Amendment Act, but the government instead of devolving it to the provinces, is busy in transferring its funds to other ministries, which is not acceptable. “We got to know about it after the federal government, accepted of transferring EOBI funds to PBM and Climate Change Ministry, before the Supreme Court…the secretary finance promised the apex court to bring back the amount, and we want to know the status,” he noted.

He said that the federal government in defiance of the 18th Amendment’s decision and the Implementation Commission formed under clause 9 of Article 270AA, Constitution 1973, continues to retain EOBI while denying provinces their rights. Rabbani further said that an amount of approximately Rs2.4 billion has illegally been transferred to PBM, while Rs1.1 billion, was given to climate change ministry, despite the fact that EOBI essentially caters to the welfare of workers and pays them a pension at a rate of Rs5250 per month.

“This callous attitude of the federal government of denying the workers their monthly pension reflects the policy of the government to give protection and announce amnesty schemes for big business while depriving the working class of their meagre pension”, he lamented. Rana Afzal said that transfer of EOBi funds to these two institutions is nothing new as it had been done for eight times in the past as well. “The EOBI funds were first transferred to some other institution back in 2005, and then it was repeated for seven consecutive times in 2010, 2009, 2011, 2012, 2012, 2012 and then again in 2012 – the time when PPP was in power,” he added.

On the request of former information minister Senator Perevaiz Rasheed, the minister repeated the years during which the EOBI funds were transferred to other departments/ministries. The minister said that the government had brought back about 95 percent EOBI funds, and the remaining amount will be transferred back to the EOBI soon. He said that the government had done nothing wrong like past governments as they had purchased properties worth Rs43 billion, adding a case against PTI leader Aleem Khan involving Rs10 billion is also under litigation.