According, the government, after due consideration of all proposals, suggestions and recommendations, is pleased to announce the incorporation of a large majority of these proposals in Budget 2009/10. Allow me to highlight some of these.
(i) NFC
The Seven National Finance Commission (NFC) would be reconstituted and its first meeting would be convened in July 2009. NFC deliberations would be completed at the earliest and hopefully within three months of the convening of the first meeting.
(ii) Budget Sessions.
Consultative process with the Standing Committees on Finance & Revenues of the National Assembly and the Senate would, in future, begin two months prior to budget presentation. In the next financial year and beyond, the government shall ensure that the budget is presented to the Parliament on or before the 30th May to allow larger Parliamentary scrutiny.
(iii) Quarterly Review of Budget
Government has decided to present the financial and fiscal performance of the government to the Senate Standing Committee on Finance and Revenue and the Standing Committee of the National Assembly on Finance and Revenue for a quarterly review.
(iv) Quarterly Approval of Supplementary Appropriations
Government would ensure that supplementary appropriations are kept to a minimum to cater for unforeseen emergent expenditures. Approval of the National Assembly would be obtained on a quarterly basis in respect of such supplementary appropriations.
(v) Revision in Ad-hoc Relief Allowance for BPS 1-16
The government has decided to revise the ad-hoc relief allowance for civil employees in BPS 1-16 from 15% to 20%.
This revision would also be applicable to personnel of the Armed Forces in BPS 1-16 and equivalent who were earlier allowed only a 15% increase.
(vi) Revision in Ad-hoc Relief for Old Pensioners
The ad-hoc relief allowance announced for old pensioners who retired ten years ago or earlier is being revised and they would now enjoy the benefit of a 20% increase in net pensions.
(vii) Reduction in Budgetary Proposal for NAB for 2009/10.
Since the government expects to wind up the National Accountability Bureau within the next three months, the budget for NAB is proposed to be reduced to Rs 183 million to cover 3 month's expenditure. The excess amount would be surrendered.
Madam Speaker
22. Your government has taken further steps towards strengthening the institutions. For the first time in so many years, only fiscal laws relating to tax, duty and surcharge have been made part of the Money Bill. For the first time an attempt has been made to remain within the provisions of the Constitution relating to Money Bill.
23. I am grateful to the Senate for their detailed deliberations on the various provisions of the Money Bill and for its recommendations. Honourable Senators in general and the Standing Committee of the Senate of Finance Revenue in particular have made vary valuable contributions. A substantial number of their recommendations have been accepted. Almost 70 of the proposed amendments in various clauses of the Finance Bill are proposed to be deleted. 18 have been modified.
24. Some of the important relief measures that are included in the prop0osed amendments to the Finance Bills, 2009 are:
Carbon Surcharge
(a) "Carbon Surcharge" on CNG is being withdrawn. This would provide an across the board relief of Rs 12 billion to the consumers.
Withholding Tax on Imports
(b) To provide relief to manufacturers, it is being proposed to lower the withholding tax from 4% to 3% for industrial imports. This involves a relief of over Rs 5 billion to the manufacturing sector and would reduce their cost of production.
Relief to Exporters
(c) Income tax collected on export proceeds is being made final discharge of liability of the exporters to facilitate export oriented activities and to enable exporters to compete more effectively in the international market.
Relief to News Print-Media
(d) News-print media is being provided relief to help them in their difficult situation, by exempting import of news print from the levy of 16% GST. Now, it will be subjected to customs duty of 5% only. Similarly, for classified advertisements, no withholding Income Tax shall apply for which a separate notification will be issued. These measures will provide a relief of about Rs 1 billion to the newsprint sector, enabling it to play its due role in the nation building process.
Gap Between Delayed Payments of Tax and Refunds Reduced
(e) The difference in the charge of additional tax on delayed payments and compensation on refund is being reduced to 3%, from present about 12%.
Concession in Requirement of Producing NTN or CNIC
(f) Requirement of NTN or CNIC for sales to unregistered purchasers is being withdrawn; similarly, presenting of NTN for opening of bank account is being made voluntary or as per requirement of the bank concerned.
Alternative dispute Resolution
(g) The procedures relating to resolution of tax disputes is being further streamlined and simplified and all such proposals that were considered to be unnecessarily harsh and punitive like conducting raids on business premises without approval of FBR, are being withdrawn.
Third Party Audit
(g) Concept of third party audit by established and certified Chartered Accountant companies is being introduced. However, it is being ensured that it does not result in unnecessary harassment of business concerns.
Tax on Cellular Services
(i) On the demand of youth and children, additional Federal Excise Duty at the rate of paisa 20 per SMS is being withdrawn. The revenue loss would be compensated by increasing the additional FED on cellular services from 19% to 19 1/2 %.
Madam Speaker
25. These were a few of the highlights of amendments proposed to the Money Bill. The government has submitted the detailed amendments to the Finance Bill, 2009 to the National Assembly Secretariat.
Thank you.
Pakistan Zindabad.