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GST collection in line with 1931 Act: Ishaq Dar
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ISLAMABAD: Federal Minister for Finance Senator Ishaq Dar on Saturday 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.
Speaking in the National Assembly, the finance 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.
The minister 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 in the galleries for cheaper political gains," he added.
Referring to the points raised by PTI leader Makhdoom Shah Mahmood Qureshi, Finance Minister Ishaq 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.
Earlier, speaking on a point of order, PTI deputy parliamentary leader Shah Mahmood Qureshi termed the collection of enhanced GST and other taxes without the passing of the finance bill by the parliament.
"The Finance Minister should clarify why the raised tax collection had been started since June 13 without the passage of the bill which the finance bill provides would be collected by July 1.
The house is yet to even have a debate the budget proposals. This tax collection is illegal and a violation of the constitution," Qureshi said.
He said that collection of increased taxes without enactment of the finance bill into law was tantamount to usurping the authority of the parliament and even the Supreme Court had also taken notice of the matter.
He said collection of tax on mere a proposed finance bill was a violation of the law which needed to be dealt with under the Constitution.
He said that the officers of Federal Bureau of Revenue (FBR) had made the parliament meaningless and now it had been proved that the FBR was a supra-parliamentary body.
Sahibzada Tariqullah also spoke on a point of order and supported the objection raised by Qureshi.
He said that collecting the increased GST without an approval by the parliament was illegal.
Shaikh Rashid Ahmed said that for the first time in history, the government had to retreat over its budget only within first two weeks of being in power.
He said that the government should review the salary raise for the public sector employees and the raise in government employees should have been increased by at least 20/25 percent in line with the price hike and inflation
GST collection in line with 1931 Act: Ishaq Dar