Mini budget in parliament today to meet IMF’s critical demands
Federal government, accepting IMF's demands, fully prepared to impose new taxes worth 170 billion rupees on Pakistanis, now people should also be ready to sweat more
On mini-budget, President Arif Alvi showed the government the way of parliament instead of ordinance, the mini-budget government will now approve the bill from public representatives instead of president. President Arif Alvi refused. 170 billion mini budget will be presented in the National Assembly today.
Finance Minister Ishaq Dar did not walk in front of the President of the State Arif Alvi, the President of the State refused to use his shoulder to set the mini-budget, and showed the Finance Minister the way to the Parliament.
Finance Minister Ishaq Dar met President Arif Alvi at the President’s House in Islamabad but could not convince the President to sign the ordinance. After which, another difficulty arose for the federal government.
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President Dr. Arif Alvi raised objections to the implementation of the budget proposals in the form of an ordinance. The federal government wanted to implement the mini-budget by issuing an ordinance on February 14 so that the agreement for the loan program from the IMF could be finalized as soon as possible. Can take shape.
After the President’s objections, the government team got busy in deliberations and the Law Ministry started preparing an emergency to bring its draft to the Parliament instead of the Ordinance. After preparation, the draft was presented in the Faqi cabinet meeting. The federal cabinet decided to approve the finance bill of the government through the parliament.
The finance bill will be presented to the National Assembly and the Senate on February 15 for approval. The National Assembly and the Senate will send the bill to the standing committees on finance of both houses. It is the discretion of the Parliament to implement the recommendations of the respective committees or not.
The finance bill is likely to be approved by the committees of both houses by Thursday morning. On the same day, the approval of the Finance Bill will be taken from the National Assembly and the Senate.
The bill will be sent to the President for his signature on Thursday evening, the reason for the immediate approval of the finance is to comply with the IMF conditions.
After the approval of the Finance Bill by the Parliament, the current obstacles in the way of agreement with the IMF will be removed. President Arif Alvi had declared the approval of public representatives as necessary to impose taxes of 170 billion rupees.
Effects of Mini Budget or Finance Bill
1: It was decided to increase the rate of sales tax from 17 to 18 percent. Which will increase the rates of every item in Pakistan.
2: Increasing the sales tax rate by one percent can lead to an additional burden of more than 50 billion on the public.
3: On the instructions of the Prime Minister, the preparation of increasing the rate of duty on luxury goods to 25% has been completed and it has also been included in the Finance Amendment Bill i.e. Mini Budget.
4: It is estimated that by taxing luxury items, an income of 60 to 70 billion rupees can be generated.
5: Excise duty on cigarettes has been immediately implemented, the excise duty on cigarettes has been increased by 153%.
Government activities have reached a peak to get the mini-budget approved by the Parliament in two days.
The moves of the federal government will bring a new flood of inflation for the people and new difficulties will arise for the people crushed in the mill of inflation.