THOUGH the Senate has not yet firmed up its full and final recommendations on the mini-budget, the deliberations so far held by its Standing Committee on Finance are rational and deserve to be accommodated in the interest of the economy and the masses.
It supported imposition of 17 percent general sales tax on goods imported by the diplomats and diplomatic missions but unanimously rejected levy of 17% GST on jewellery industry, baby formula milk, match boxes, solar panels, contraceptive drugs and imported bicycles.
Under the constitutional scheme of things, the Senate has no powers to vote upon a money bill but it deserves appreciation for making valuable suggestions to improve the budgetary proposals during discussions on them.
In this case too, the Committee of the Upper House has represented aspirations of the people by rejecting imposition of GST on jewellery, baby milk, match boxes and solar panels on the ground that it will discourage documented industry and encourage undocumented industry.
We have been emphasizing in these columns that instead of putting additional burden on those who are already paying their due taxes, the Government should explore avenues to tax those who are either paying no tax or much less than their obligation.
It is, however, regrettable that the same old policy persists, which is evident from the fact that instead of making 36,000 goldsmiths to pay tax (presently only 54 pay the goldsmith tax), the Government has imposed tax on gold and jewellery, the prices of which have already soared because of exchange rate.
We hope the Senate committee would thoroughly debate all proposals and also give its valuable suggestions on issues like taxing IT and cellular industry and medicines.
