Out of the total recommendations presented by the Senate Committee on Finance, Revenue and Economic Affairs, the House approved 66 recommendations unanimously. The Senate recommended the government to check fiscal deficit and address the challenges of deficit financing that will enable it to review the existing monetary policy and tackle the menace of inflation.
The House proposed that taxation laws might be invoked in Gilgit-Baltistan, FATA and PATA to eliminate discrimination between different parts of the country, which in turn would broaden the tax base leading to lower tax rates. It was suggested the government may remove injustice and discrimination in the taxation system so that available resources can be optimised. It recommended the government may prevent the misuse of Afghan Transit Trade, curb smuggling, under invoicing and use railways for regional transportation of goods.
The state-owned entities including PIA, WAPDA, PEPOCO, Pakistan Steel and Pakistan Railways may be restructured and operated under public-private partnership strictly by professionals selected on merit, it recommended. The House recommended the government may encourage compliant tax payers by issuing tax compliant cards whereby card holders will be given priority in tax refunds, concessions in tax rates, quota allocations and speedy processing of cases at appellate forums. Besides, the government may introduce FBR privilege cards for compliant taxpayers, who pay over Rs 5 million as Income Tax so that they can get incentives in investments and processing of utility connections.
All the administrative expenses except salaries be reduced by 25 per cent, it recommended besides giving proposing that the industrial and agriculture machinery imported or locally manufactured be exempted from all taxes and duties. It recommended introduction of agriculture reforms to incentives small farmers and rural women, promoting micro-financing and small and medium enterprises besides establishment of value addition and labour intensive industry. It recommended that minimum wage may be raised to at-least Rs 8,000 per month while the limit of taxable income may be raised to Rs 400,000 per year. The Senate recommended that all allocations for official foreign visits may be curtailed including foreign tours of the President and the Prime Minister. It proposed that the government may adopt austerity measures, reduce non-development expenditures and eliminate VIP and VVIP cultures. It recommended that all international loans and economic agreements may be rectified by the Parliament and proposes that State Bank of Pakistan may accelerate its efforts towards promotion of Islamic banking and finance in the country in order to eliminate Riba as stipulated in Article 38 (f) of the constitution.
The Upper House recommended that funds may be allocated in the budget 2011-12 for the provision of gas to those districts of Balochistan which were not supplied gas so far. It also proposed that Rs 57 billion be allocated to Balochistan for water preservation. It proposed the government may announce subsidised long-term fixed interest loans to set up new industrial units. Road link between Taxila and Haripur which passes through Hattar Industrial Estate may be upgraded. It recommended that sufficient funds may be allocated in PSDP for Bara Dam, CRBC, Daraban Dam, Munda Dam, Dasu Lawi, Khayal Khwar, Chore Nala, SPAT Gah Hhydro power project and Tarbela Forest Extension Hydro Project. The House also recommended the government may take measures for improving law and order and security situation in Pakistan including Karachi.
The recommendations of Senate were sought under Article 73 of the Constitution for incorporation in the finance bill. A total 205 proposals were given by the Senators that were referred to Senate Standing Committee on Finance and Revenue for finalisation and report.
The Standing Committee held five meetings from June 8-10 and the recommendations of each senator were considered and deliberated by the Committee. After thorough discussions and deliberation for around 20 hours, the committee formulated its recommendations and presented its report in the House.