ISLAMABAD: The Senate Standing Committee on Finance on Thursday recommended withdrawal of GST and customs duty on stationery items and approved the Recovery of Finances (amendment) Bill.
The representatives of stationary makers told the committee that 17 per cent GST has been slapped on stationary items — including pens, pencils, erasers — which were zero rated earlier.
Some imported components will now be liable to custom duty at the rate of 11pc to 20pc, they added.
The committee, headed by its chairman Senator Saleem Mandviwalla, supported the abolishment of taxes on stationary.
The committee faced stiff opposition from several members including Senator Kamil Ali Agha during the discussion on the Recovery of Finances (amendment) Bill that would allow the banks to sell off the mortgaged properties of defaulters.
Senators were assured that safeguards have been provided to protect borrowers in accordance with the judgment of Supreme Court of Pakistan. However Senator Agha filed his note of dissent and cautioned: “If approved by the Parliament, this law would be used against political opponents.”
While approving the bill, Senator Mandviwalla said only clauses that were permissible by constitution have been inducted in the bill.
The representative of dairy industry informed the committee that prices of packaged milk would go up by Rs8 per litre if Parliament approves the Finance Bill.