Pakistan's lower house passes bill to raise revenue and make financial reforms
Pakistan's lower house passes bill to raise revenue and make financial reforms

The Finance (Supplementary) Bill 2021 was passed by Pakistan's lower house of parliament on Thursday in order to generate more revenue and undertake financial reforms.

During the session that ended late Thursday night, Finance Minister Shaukat Tarin presented the bill before the National Assembly of Pakistan for vote. In his remarks to the session, the finance minister stated that the government has tabled a bill to implement financial and tax changes for the country's socio-economic growth.

The proposed measures, according to the minister, would bring more individuals into the tax net and assist the government in documenting its finances and enterprises.

Speaker of the House Asad Qaiser read out all of the bill's clauses and urged members to stand if they supported it or sit if they opposed it. All of the sections of the bill proposed by the finance minister have been passed in the house, according to the speaker.

Following objections from the government's affiliated parties, the finance minister withdrew parts of the law that would have imposed taxes on bread, milk, bakery goods, red chilies, iodized salt, solar panels, and computers before voting began.

The government submitted its yearly budget for the period July 2021 to June 2022 in June of last year, which was also passed by the lower house with a comfortable majority. The finance supplementary bill, according to local media citing official sources, amended certain laws linked to taxes and customs, a need by the International Monetary Financial to evaluate Pakistan's extended fund capacity.

According to the law, the government would collect an 8.5 percent sales tax on domestic and hybrid automobiles with engines up to 1,800cc, a 12.75 percent tax on hybrid vehicles with engines from 1,801cc to 2,500cc, and a 12.5 percent tax on imported electric vehicles.

However, the government lowered duty on locally made 1,300cc automobiles from 5% to 2.5 percent, on locally manufactured 1,300cc to 2,000cc cars from 10% to 5%, and on locally manufactured cars with engine capacity of more than 2,000cc cars from 10% to 5%, according to the minister.

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