AT a time when common man was intensely criticizing absence of proper relief measures in the budgetary proposals for the next financial year, the Senate deserves appreciation for making comprehensive people-centric recommendations to the lower house of the parliament, which, if implemented in letter and spirit, could go a long way in resolving most of the woes of the people. The recommendations, formulated by the house Standing Committee on Finance, were approved by a Senate session on Thursday, envisage, among other things, proposals to increase salaries of federal government employees by 15% and restore frozen medical allowances for both serving employees and pensioners; reduce income tax rates for low income individuals; a reduction in General Sales Tax (GST) on food items, medicines, educational supplies and agricultural inputs; and allocation of funds to reduce electricity tariffs.
Under the law, the upper house has no role in the passage of money bills but it has demonstrated its worth by giving concrete input that reflect aspirations of different segments of the society, therefore, the Government and Members of the National Assembly must consider them seriously for the good of the people. There are legitimate concerns that the increase in pays and pensions announced by the Finance Minister was a joke in view of a steep rise in inflation during the outgoing year, therefore, the fixed income groups deserve proper relief. The Senate has proposed a modest increase of 15% as against 10% announced in the budget as well as reduction of income tax rate for low income groups that currently stand discriminated by the Government. There is also no logic to maintain a freeze on the medical allowance of employees and pensioners when prices of medicines and medical services have been hiked manifolds during the year. Similarly, it is always unwise to impose GST on food items, agriculture inputs and educational supplies as such measures significantly increase the cost of living, forcing families to compromise on their food quality and standard of living. The Senate also recommended withdrawal of additional charges and taxes imposed through electricity bills on domestic and low-income consumers. Such a rationalization is long due but the Government is lending a deaf ear to the demand as it collects a hefty amount of Rs.620 billion in taxes and duties on the electricity bill. It proposed extending tax exemptions available to IT exporters and freelancers for another 10 years, which deserves to be accommodated. Mindful of the need to increase revenue generation, the house recommended increasing taxes on vehicles with engine capacities above 3,000cc, luxury properties and non-productive assets. The Senate also called for reducing indirect taxes on essential goods and establishing a mechanism for transferring development funds to elected local governments. It called for comprehensive taxation and documentation measures for luxury retail businesses, real estate transactions and luxury transactions undertaken by non-filers. Recommendations were made for increase in federal allocations for public hospitals and primary healthcare, enhanced funding for higher education, scholarships and vocational training programmes and publication of all tax exemptions and concessions granted to specific sectors or entities. The house also recommended allocation of minimum recurring budget of Rs.130 billion for universities in the budget and raising it to Rs.190 billion by 2030-31, which is a fair proposition in view of the fact that institutions of higher learning need enhanced allocations to play their role in overall national efforts aimed at research and development. Finance Minister Muhammad Aurangzeb, who wrapped up debate on the budget in the Senate, dwelt on the already announced measures both in the budget and before and avoided any commitment to incorporate these recommendations in the budgetary proposals despite explanation of the Chairman of the Standing Committee Saleem Mandviwalla that 123 proposals put forward by the Senate are intended to enhance fairness, effectiveness and public acceptance of the budget. We would urge the Government to incorporate maximum recommendations in the Finance Bill for the next year because of their relevance for the common man.
