Income Tax, State Bank ordinances: Opposition demands withdrawal of ‘unconstitutional’ ordinances

ISLAMABAD: The opposition parties in the National Assembly Monday strongly protested against the promulgation of the Income Tax Ordinance and the State Bank of Pakistan Ordinance, terming the moves to impose additional Rs700 billion taxes on masses unconstitutional and demanded withdrawal of the two ordinances.

Speaking on floor of the House, the opposition leaders -- Ahsan Iqbal, Raja Pervaiz Ashraf and Ghulam Dastgir -- demanded withdrawal of the Income Tax Ordinance as they said the Constitution did not allow it.

They said it was only the National Assembly which could okay a money bill. “Imposing additional Rs700 billion taxes on masses through ordinance is an unconstitutional act,” Ahsan said. Federal Ministers Hammad Azhar, Dr Shireen Mazari and Adviser to the Prime Minister on Parliamentary Affairs Dr Babar Awan, however, said that no violation of the Constitution was committed in promulgation of the ordinance.

Dr Shireen Mazari, while taking her seat after angrily responding to Ahsan Iqbal, uttered the word ‘stupid’, but it could not be heard by the opposition benches. On suggestions from the government and the opposition, the speaker constituted a committee comprising four members each from the two sides to recommend constitutional aspects as to whether an ordinance like the Income Tax Ordinance could be promulgated or not.

Ahsan Iqbal, taking the floor, said that imposition of new taxes or giving any exemptions in taxes is called money bill, and as per Article 73 of the Constitution, the money bill could originate in the Parliament. He pointed out that the Income Tax Ordinance would result in Rs700 billion new taxes.

“Additional Rs700 billion taxes and increase in electricity tariffs by Rs7 per unit by Nepra is height of brutalities against the common man,” he said. On the issue of giving autonomy to State Bank, the PML-N parliamentarian said that the opposition would not allow the government to make the State Bank of Pakistan subordinate institution of the IMF.

Federal Minister Hammad Azhar came down harsh on the opposition, saying that the past governments had been imposing taxes through the SROs [Statutory Regulatory Orders], and now they were talking about the Constitution.

Ahsan Iqbal also objected to the ruling of the speaker on the issue saying that being the custodian of the House, it was a responsibility of the chair to uphold the Constitution and privilege of the Parliament.

To that the speaker said the presidential ordinance could be promulgated on any issue, but it should be laid in the National Assembly within 120 days. Ahsan said the chair should not give such a ruling which the opposition parties would challenge in the superior courts.

Minister of State for Parliamentary Affairs Ali Muhammad Khan and Minister for Human Rights Dr Shireen Mazari also contented that what the government did with promulgation of the ordinance was according to the Constitution.

Ahsan said the way Ali Muhammad Khan was declaring the promulgation of ordinance as per Constitution, the government could lay the federal budget before National Assembly after announcing it.

Former speaker Sardar Ayaz Sadiq said the House would adopt only that path which was correct in the light of Constitution and law. Ghulam Dastgir Khan of the PML-N said the government could not impose any new tax on people without having nod of the National Assembly. He advised the government not breach privilege of the House for the purpose of a brief relief.

“The government will have to close this chapter of introducing new taxes through promulgation of ordinances,” he said. Raja Pervaiz Ashraf also contended that no additional taxes could be imposed without seeking approval of the elected representatives, adding that ordinances should not be made a joke.

Ahsan said even if the ordinance was laid in the National Assembly, the government had burdened people with taxes for at least 120 days. Earlier, the former prime minister Raja Pervaiz questioned as to why the National Assembly session was summoned having no special agenda when COVID-19 cases were on the rise and all activities had been cancelled.

He complained that special protective measures had not been taken during the first day’s proceedings. Dr Babar Awan said a strategy should be devised as to how many members should be present in the House at a time.