The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, on Tuesday successfully concluded its deliberation on the Finance Bill, 2023-2024.
During the committee meeting, thorough discussions were held to review the Sales Tax Provisions of the Finance Bill, 2023-2024, with a clause-wise examination of the bill. The committee carefully evaluated each section of the bill and made several recommendations/decision. Certain sections were accepted, some were rejected, and a few were put on hold for further clarification. Notably, all sections falling under the ambit of 99D were deferred to allow for additional clarification.
The committee accepted the inclusion of Section 113, which pertains to minimum tax on the income of certain individuals. Additionally, Section 146-D, concerning the recovery of outstanding liabilities under other laws, and Section 152, which allows for applications of exemption certificates related to payments to non-residents, were also accepted.
To encourage exports, the committee approved the proposal in Section 154, which treats sales made to Direct Exporters under the Export Facilitation Scheme, 2021, as indirect exports subject to a reduced tax rate of 1%, as opposed to the higher rate of 4.5% under Section 153(1)(a). Furthermore, Section 154A, related to tax on the export of services, was also approved.
