Finance Supplementary Act 2023& Constitutional Rights
Important amendments has been introduced in Sales Tax Act 1990 and Federal Excise Act, 2005 and Income Tax Ordinance 2001 through Supplementary Act, 2023.I want to describe them.
First of all I will discuss the statement and purpose of it. Tax rates has been enhanced to reduced the fiscal gap and increase the income of the State of Pakistan.
Amendments in Tax rates:
1. Enhancement in Standard Rate of Sales Tax:
In order to reduce fiscal gap and increase tax to GDP, the standard Rate of sales tax has been increase from 17 % to 18%.
IMPACTS:
All the household products that are necessary to keep alive have been out of reach from Public of middle class. It had no impacts on rich class.
2. Increase in rate of FED on Aerated Water and Imposition of FED on Sugary Drinks
The rate of federal excise duty on all types of aerated water has been increased from 13%t to 20% and 10% FED has been imposed on sugary fruit juices, syrups and squashes.
Impacts:
These fruit juices and aerated water become to much expensive due to both kinds of taxes i.e. Sale Tax and FED. Water is necessary to stay alive. Human can stay alive with out food for several days but can die with in few days with out water. It is in just to impose taxes on eatable good. Man can bear old cloths and shoes but it is difficult to stay alive with out eat able and drinkable things.
3. FED on Locally Manufactured Cigarettes and on International Air Travel in Clubs, Business and First Class.
FED has been enhanced on Locally Manufactured Cigarettes and FED has been imposed on International Air travel in club, business and first class. It is pertinent to point out that there is no change in FED on International Air travel in economy class and domestic Air travel.
Impacts:
It is a good news that there is no impacts at nice man to impose FED on Cigarettes and Air travel.
It is a good source of income of the government of every country.
4. Enhancement of FED on Cement.
The rate of FED on Cement was Rs.2/KG which was reduced to Rs.1.50/KG as part of the relief measure in the wake of COVID -19 pandemic through Finance Act, 2020.In order to bring at par with the rate of prevailing prior to 1st July, 2020, the rate of FED on Cement has been increased to Rs.2/KG.
Impacts:
It is unjust to impose FED on Cement. It is necessary to build shelter to protect and keep safe the family from hard weathers. The Parliament did unjust and unfair to the citizens of Pakistan.روٹئ-کپڑا اور مکا ن was the slogan of the one of the political party that is part of this Government. Roti, Kapra aur Makan is fundamental right of every citizen of Pakistan that is guaranteed by The Constitution of Islamic Republic of Pakistan. It is a duty of the state to provide necessities of life to observe Right to Life through Government which is important organ of The State of Pakistan.
5. Advance Income Tax on functions and gatherings:
Every operator of a marriage hall, marquee, hotel, restaurant, commercial lawn, club, a community place or any other place used for such purpose shall collect advance income tax at rate of 10% on the total amount the bill from person arranging or holding a function.
Function includes any wedding event, seminar, a work shop, a session, an exhibition, a concert, a show, a party or any other gathering held for such purpose.
Impacts:
The Parliament did it right to impose income tax on such gatherings and functions. It is a good source of income of every state.
But there is very unjust to include the function of wedding in this definition. It is heavy burden on families who are arranging functions of wedding. It is duty of the state and the society to make easiness to arrange wedding. There is command of Hazrat Muhammad (peace be upon him) to perform Nikah to keep chaste.
Protection of family is protected by the article of 34 of the Constitution of Islamic Republic of Pakistan.
The State shall protect the marriage, family,mother and child.
Now question is this why Parliament impose advance in come tax on wedding function.
Conclusion:
It is true that taxes are good source of income of every government of every country. But should avoid to impose taxes on eatable things and wedding function. The government should facilitate to citizens to stay alive and maintain their family life. Otherwise citizen will loose faith on life and will indulge in crime. Then healthy society will only and mere dream.
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