At a meeting of the Senate Standing Committee on Finance, members of the opposition and the chairman of the Senate Standing Committee on Finance voiced misgivings about the two-day deadline for ratification of the supplementary finance bill and the formulation of recommendations.
At the meeting, Senator Talha Mehmood, the head of the Senate Standing Committee on Finance, convened a meeting. The members had to confront each other.
The chairman of the committee stated that the chairman of the Senate has given the committee until Friday to consider the supplementary finance bill, to which Senator Musaddiq Malik responded that the constitution provides 14 days for consideration of supplementary finance bills, and that these unconstitutional instructions have come from the house.
Senator Zeeshan Khanzada responded to Musaddiq Malik by saying that the law ministry should be questioned if it is unlawful. Senator Sherry Rehman responded by saying that the Ministry of Law is not required to do everything.
Senator Mohsin Aziz afterwards stated that “we will begin discussing it today and evaluating it clause by clause,” and the committee then began studying the supplementary budget bill chapter by clause.
FBR Chairman Dr. Ashfaq Ahmed gave a briefing on the supplementary finance bill, saying that the IMF asked that the sales tax be reduced to 17% at the regular rate, as well as the elimination of tax exemptions and tax reforms. The demand surfaced.
We have imposed new taxes in the guise of tax reform in the past, but we have not repealed tax exemptions, we have not touched subsidies, and we have just worked on exemptions, including tax costs, according to Chairman FBR. Targeted subsidies should be supplied as much as feasible, according to the IMF.
Dr. Ashfaq Ahmed stated that a tax exemption of Rs.160 billion has been eliminated, including a tax exemption of Rs.112 billion on machinery used in the pharmaceutical business, as well as a tax exemption of Rs.71 billion on different luxury imported commodities.
He stated that pharmaceutical businesses would get reimbursements and that a tax would be put on the pharma sector at the import stage, lowering drug prices. This is a step that has already been taken.
Senator Musaddiq Malik responded to Chairman FBR’s comments by asking, “Do you commit that this step would cut the price of medicines?” I intend to go.
Senator Musaddiq Malik pressed him on who would be willing to make a pledge in order to obtain a commitment from the Ministry of Finance. The chairman of the committee responded by saying that we had phoned DRAP, but that no one from DRAP had shown up, and that it would not lower, but rather increase, the price of drugs.
Senator Farooq H. Naik remarked during Chairman FBR’s briefing in the meeting that the IMF acts as a money lender to secure its debt, to which Senator Mohsin Aziz responded that it simply takes actions to regulate. will take place.
Senator Mohsin Aziz suggested an amendment to the repeal of the drug sector’s tax exemption that would require the pharma business to provide a bank guarantee rather than repeal the tax exemption. The Chairman of the Federal Reserve Board vetoed his plan.
The Chairman of the Federal Reserve Board stated that after levying a tax on the pharmaceutical business, the refund should be provided promptly. While I agree with the concern that drug prices will rise,
He claims that the pharmaceutical business has a 700 billion rupee turnover and a 530 billion rupee undocumented supply chain. Only 453 manufacturers are registered, out of a total of 800.
He said that tax fraud and tax exemption were being used unlawfully in the pharmaceutical business, with Rs. 35 billion in input tax being passed on to patients. Through a track and trace system, counterfeit and tax-free pharmaceuticals will be banned.
Despite the fact that the committee has requested a list of vitamins from DRAP, Chairman FBR has stated that vitamins will not be exempt from taxation in the packaging of medications.
This is because the FBR has enhanced the refund system and made it a faster refund mechanism, with returns to the pharmaceutical business being paid within 48 hours.
Sales tax refunds are given in 72 hours, according to him. I’d like to remind everyone that if they haven’t gotten their sales tax refunds in 72 hours, they should contact the committee.
