The Senate today (Thursday) unanimously adopted various recommendations furnished by the Senate Standing Committee on Finance for incorporation in the finance bill 2021-22.

The recommendations were moved by the committee Chairman Senator Muhammad Talha Mehmood and 114 of them were related to the money bill and 180 to Public Sector Development Programme.

These recommendations include reduction of withholding tax on healthcare sector from eight to three percent, exemption of edible items from General Sales Tax, 20 percent increase in the pension and basic pay of the government employees and increase in retirement age to 62 years, reduction in indirect taxes and no increase in petroleum levy.

The Upper House proposed that imposition of 10 billion rupees taxes on salaried class by slapping income tax on their expenditure on medical treatment, various allowances and their savings in provident and pension funds should be withdrawn.

It was recommended that the budget for health and education sectors should be doubled and minimum wage for Islamabad Capital Territory be increased to 25,000 rupees, and food items be exempted from retail tax, interest free loans for farmers.

The senate committee also proposed that turn over taxes on flour mills should not be imposed.

The House recommended to reduce duties and other charges on imported cosmetics, minimize import taxes on raw materials to encourage investments and productions, reduce custom duty on import of new spare parts of cars, and GST on edible items from 17 to 8.5 per cent, provide incentives for producing readymade auto disabling syringes, and withdrawal of increase in sales tax from 10 to 17 per cent on all poultry feed.

The House proposed that turnover of flour mills from 0.25 to 1.25 per cent and imposition of 17 per cent sales tax on gold should be withdrawn.

Recommendations included not to levy any tax that would increase the price of milk products and restoration of zero rating on milk and fortified dairy based nutritious powder. 

Speaking on the occasion, Talha Mahmood said Finance Minister Shaukat Tareen graciously listened to the recommendations and promised to give due consideration for incorporation of these recommendations in the Finance Budget 2021-22.

“The International Court of Justice (Review and Re-consideration) Bill, 2021” and “The Muslim Family Laws (Amendment) Bill, 2021” were presented in the Senate today.

The Chair referred the bills to the standing committee concerned.