Pakistan's lower house passes bill for additional revenue, financial reforms-Xinhua

Pakistan's lower house passes bill for additional revenue, financial reforms

Source: Xinhua| 2022-01-14 11:37:26|Editor: huaxia

ISLAMABAD, Jan. 14 (Xinhua) -- Pakistan's lower house of parliament on Thursday passed the Finance (Supplementary) Bill 2021 to generate additional revenue and bring financial reforms.

Finance Minister Shaukat Tarin presented the bill before the National Assembly of Pakistan for voting during the session that concluded late Thursday night.

Addressing the session, the finance minister said the government presented the bill to bring financial and tax reforms for the socio-economic development of common persons in the country.

The minister added that the new reforms would bring more people into the tax net and help the country document the finance and businesses.

Speaker of the house Asad Qaiser read out all clauses of the bill and asked members to stand in favor of the bill and remain sitting if they are against it. The speaker gave the ruling that all the clauses of the bill presented by the finance minister had been passed in the house.

However, before the start of the voting, the finance minister took back clauses of the bill to impose taxes on bread, milk, bakery items, red chillies, iodized salt, solar panels and laptops following concerns from allied parties of the government.

Earlier in June last year, the government presented the annual budget for the period from July 2021 to June 2022, which was also passed by the lower house with a clear majority.

Local media quoting official sources said that the finance supplementary bill amended certain laws related to taxes and duties, a requirement by the International Monetary Fund to review Pakistan's extended fund facility.

Under the bill, the government will impose a sales tax of 8.5 percent on up to 1,800cc domestic and hybrid cars, 12.75 percent tax on 1,801cc to 2,500cc hybrid vehicles and will charge 12.5 percent taxes on imported electric vehicles, said the minister.

However, the government reduced duty on locally manufactured 1,300cc vehicles from 5 percent to 2.5 percent, from 10 percent to 5 percent on locally manufactured 1,300cc to 2,000cc cars, and kept 10 percent tax on locally manufactured cars having engine capacity of more than 2,000cc, added the minister.