Islamabad June 29 2022: National Assembly on Wednesday passed the Finance Bill-2022 after clause by clause consideration and adopting certain amendments in it.
Minister of State for Finance and Revenue Aisha Ghaus Pasha moved the motion for consideration of the Finance Bill, 2022 to give effect to the financial proposals of the federal government for the year beginning on July 1, 2022.
The motion was passed with majority vote which led to the passage of Finance Bill-2022 after clause by clause reading and adopting amendments after due process of voting.
All amendments moved by the Minister of State for Finance and treasury lawmakers were adopted by the House while the amendments of opposition members including Javaria Zafar Aheer (PTI), Wajiha Qamar (PTI), Ramesh Kumar (PTI), Saira Bano (GDA), Maulana Abul Akbar Chitrali (MMAP) and an Independent MNA Mohsin Dawar were rejected by the House after voting.
According to the Rule 187 of the Rules of Procedure and Conduct of Business in National Assembly 2007, not less than four days shall be allotted for the general discussion on the budget. However, the National Assembly smoothly continued debate on the Finance Bill, 2022 for 10 days.
The formal debate started on June 13, 2022 that continued till June 24, 2022. The House also discussed recommendations of the Senate and three MNAs expressed their views on it.
Minister for Finance Miftah Ismail had concluded debate on Finance Bill on June 24, 2022. The House held discussion on the Charged Expenditure included in Demands for Grants and Appropriations for the financial year ending on June 30, 2023. The House approved 131 demands for grants related to various departments and ministries.
The total volume of the federal budget for fiscal year 2022-23 is Rs9.5 trillion with allocation of Rs 2,158 billion under the Public Sector Development Programme (PSDP) which is one per cent up from Rs 2,135 billion last year.
An amendment to take back the relief provided to the salaried class was also approved. Under the new rates, no tax will be imposed on those earning less than Rs0.6m per year. Meanwhile, those earning between Rs0.6m to Rs1.2m will have to pay a fixed tax of 2.5pc of the amount exceeding Rs0.6m.
Those earning Rs1.2m to Rs2.4m will have to pay a fixed tax of Rs15,000 plus 12.5pc of the amount exceeding Rs1.2m. Where taxable income exceeds Rs2.4m but does not exceed Rs3.6m the tax rate is Rs136,000 plus 20pc of the amount exceeding Rs2.4m.
Those earning between Rs3.6m to Rs6m will have to pay Rs405,000 plus 25pc of the amount exceeding Rs3.6m. For income between Rs6m to 12m, the tax will be Rs1m plus 32.5pc of the amount exceeding Rs6m. Where taxable income exceeds Rs12m, the tax is Rs2.9m plus 35pc of the amount exceeding Rs12m.
The Ministry of Finance has termed the budget 2022-23 as growth budget and it is based on a well-thought-out strategy to boost the economic growth outlined in the medium-term budgetary strategy paper for FY23 to FY25. It gives a clear roadmap of the strategic priorities, revenue and spending policies of the government.
During the debate on the Finance Bill, Aisha Ghaus Pasha said there had been no pressure from International Monetary Fund (IMF) to integrate amendments in the federal budget 2022-23 saying that the changes had been made in larger interest of the country.
The amendments were made in such a way that the common man should not be affected, she said adding that the government had reduced taxes on the people having small incomes while increased tax on the higher income people.
She said the previous government agreed on some amendments with IMF that were being followed due to commitment of the State with the international monetary institution.
She said that super tax was being levied on the rich industrialists while small income segments had been given relief.
Further, the NA approved an amendment for imposing a super tax between 1-4pc on the income of those earning between Rs150m to Rs300m. It also approved imposing a 10pc “super tax” on large-scale industries including cement, steel, banking, airlines, textile, automobile assembling, sugar mills, beverages, oil and gas, fertiliser, cigarettes, chemicals, and LNG terminals. Corporate tax on Banks has been reduced to 39pc from 42pc and Banks are no more liable of paying poverty alleviation tax.