With the opposition members of the Lower House of the parliament fiercely criticising the federal budget of 2013-14 terming it a “budget for the privileged”, the treasury benches seemed tamed in their rhetoric, just trying to justify the criticism with “less time.”
The Pakistan Muslim League-Nawaz (PML-N) government was also forced to go for first retreat on the issue of salary raise for the government employees within ten days of taking up the reigns of the government as finance minister made an announcement on the floor of the house about 10 percent salaries raise despite the critical financial situation it was facing.
Not only did Finance Minister Ishaq Dar agree to the notion of Opposition that the name of Benazir Income Support Programme (BISP) could not be changed which had been proposed in finance bill to be renamed as National Income Support Programme, but Minister for Planning and Development Ahsan Iqbal announced that the government was open to the proposals from the Opposition to improve the finance bill.
However, Shah Mahmood Qureshi of Pakistan Tehreek-e-Insaf (PTI), speaking on a point of order, termed the collection of increased general sales tax (GST) without a nod to the finance bill by the parliament illegal.
“This is a blatant violation of the Constitution. No tax can be collected without legislation in the parliament. This tax collection is illegal and unacceptable,” remarked Qureshi.
He said that collection of increased taxes without enactment of the finance bill into law was tantamount to usurping the authority of the parliament.
“It seems that the officers of Federal Board of Revenue (FBR) have made the parliament meaningless and now it has been proved that the FBR was an supra-parliamentary body which can usurp powers of the parliament,” he asserted.
Shah Mahmood Qureshi said that the finance minister should respond to the question why the parliament was being undermined by “babus of the FBR” and since the finance bill had not been passed by the parliament, how could the FBR tax the people with an increased GST.
WALKOUTS
Qureshi, later, staged a token walkout from the house along with the other PTI legislators. The lawmakers of Jamaate-e-Isami (JI) also staged a walkout from the house against what they called the withdrawal of relief package for the people of Malakand Division.
Sahibzada Tariqullah of the JI said that the relief package for the people of Malakand had been withdrawn by the federal government which he said his party would oppose. Tariqullah announced a token walkout in protest to the government’s decision. Later, the lawmakers of both the parties returned to the house.
Opening the debate on budget, Leader of the Opposition Syed Khurshid Shah described the finance bill as a budget for capitalists and claimed that it lacked incentives for the poor, farmers, working class and laborers.
BUDGET DEBATE
Shah objected on different proposals elaborated in the budget and said it would further multiply the problems of the common people. Touching upon various subjects, he questioned as to how it could be stated as a people-friendly budget when GST increase will result in price hike. There was no relief for the farmers, peasants and laborers, he added. Most of the proposals were unrealistic and tough to be implemented, he maintained.
He also stressed to reveal the reasons behind load shedding, questioning why the Supreme Court did not take suo moto over this issue.
He urged the government to persuade measure towards self-reliance instead of looking towards others for help. Shah said Pakistan was a victim of terrorism and the war against terrorism had cost the country Rs70 billion but the finance minister did not mention to any strategy to control terrorism and meet the extra expenditures being incurred due to this menace.
Taking part in the budget debate, Sheikh Rashid Ahmed, chief of Awami League, said that the stock exchange was a casino of the rich and it had nothing to do with the state of economy. He said the salaried class was suffering badly due to inflation and wheat-flour was being sold at Rs50/kg. No step was being taken to stop power leakages and power thefts, he said. Moreover, he said that the PML-N had suffered badly due to its bad decisions. He said that there was no allocation made in the budget for Iran-Pakistan gas pipeline.
PML-N FIRES BACK
Responding to the points raised by the opposition, Minister for Finance Senator Ishaq Dar said that the 1931 Act allowed the government to collect any increase in tax/GST/custom duty immediately with the laying of the finance bill in the National Assembly.
The minister said that it was a tradition since 1947 that with the laying of the finance bill in the house, the enhanced tax collection started with immediate effect. He asked the opposition benches that the government was ready to amend the law if the opposition wanted to repeal it and change a practice being carried out since 1947. He said collection of proposed raise in the GST was a standard practice and was a part of the law.
“This is also international norm. This happens in Asia and even India also does the same. Let’s not play to the galleries for cheaper political gains,” he remarked. Dar said that this practice was being carried on when Qureshi was also a part of the government and being a minister, he never objected to this practice.
Law Minister Zahid Hamid read out the 1931 Act, stating that the law allowed collection of levy/taxes on provisional basis. He said that the finance bill also had an attached document, declaring that the tax collection would start by June 13. He said that the opposition members should have read the finance bill before criticizing it.
Minister for Planning and Development Ahsan Iqbal said drone attacks were violation of Pakistan’s sovereignty and these could not be tolerated at any cost. “We need to exploit effective diplomacy to stop these attacks,” he said in response to a point raised by PTI MNA Dr Shireen Mazari who had raised the matter.
Iqbal said the PML-N government had a clear viewpoint on drone attacks and Prime Minister Nawaz Sharif has also categorically given his point of view on drone attacks by summoning the US diplomat to Foreign Office to register Pakistan’s protest against drone attacks.
Portraying the economic condition, Ahsan Iqbal said previous government had left Rs500 billion Circular Debt for the new government which is being paid.
“All the economic indicators are so disappointing and it seemed there was not a proper planning. Owing to weak and unwise policies of previous regime, we are now facing unemployment, low economic growth, corruption and poverty, adding that based on these realities PML-N pursued a hard course and prepared a budget in a very short period,” he added.