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Friday, July 19, 2024  
12 Muharram 1446  

Senate panel proposes sweeping changes to Finance Bill

Recommends mandating credit/debit card transactions for purchases exceeding Rs30,000

The Senate Standing Committee on Finance and Revenue has finalized a comprehensive set of recommendations for major changes to the upcoming Finance Bill 2024, Business Recorder reported.

The proposals aim to encourage documentation, facilitate the general public, and promote economic transparency.

The committee proposed that all transactions exceeding Rs50,000, excluding utility bill payments, must be made via crossed cheque, bank draft, pay order, or other crossed banking instruments. This would require the transfer of the sales tax invoice amount directly from the buyer’s business bank account to the supplier.

The upper house of Parliament’s panel has revised the amendment related to the liability for tax payments or erroneous refunds. It incorporates a default surcharge at the rate of KIBOR plus three percent per annum, whichever is higher.

The committee recommended mandating credit/debit card transactions for purchases exceeding Rs30,000 to promote economic documentation and transparency.

It also proposed imposing uniform sales tax rates on solar industry components, a move aimed at supporting the renewable energy sector. The panel recommended withdrawing taxes on eight specified stationary items under the Finance Bill 2024, providing relief to consumers.

The committee suggested requiring price labels on all consumer goods to empower informed purchasing decisions by the general public. It made recommendations to identify organisations exploiting tax exemptions under the guise of charitable status, ensuring the proper utilization of tax concessions.

Moreover, the Senate panel proposed providing additional allowances equal to 100 per cent of basic pay for differently able individuals, comprising less than two per cent of the workforce. It also recommended distinguishing remote workers from freelancers for tax purposes, addressing the evolving nature of employment.

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