SC judges’ strength to be raised to 29
ISLAMABAD: The government has decided to increase the strength of the Supreme Court judges from 16 to 29 with a simple majority in the National Assembly, through the 2008-09 Finance Bill. Clause 18 of the Finance Bill suggests an amendment in Section 2 of the Supreme Court Act 1997 to increase the number of Supreme Court judges to 29, with effect from November 3, 2007. This amendment has apparently been proposed to make possible the continuation of the services of the Supreme Court judges sacked by President Pervez Musharraf. Zulfiqar Ghuman
Relief for some, hardship for most in budget
* Government employees garner biggest relief from new budget
* Benazir Income Support Programme to provide Rs 1,000 per month to qualifying households
* 20pc basic pay raise for civilian and military officials
* End of 15pc duty tax on CNG buses, energy savers
* Minimum wage raised from Rs 4,600 to Rs 6,000
* 10% job quota for women in govt departments
* Duty on 300 luxury items including big cars increased
* Increase in sales tax from 15 to 16 percent
* Duty on banking, insurance services raised to 10pc
* Withholding tax on cash withdrawal from banks now 0.3%
By Rana Qaisar/Sajid Chaudhry/Irfan Ghauri
ISLAMABAD: The coalition government on Wednesday announced a Rs 2.1 trillion federal budget for the 2008-09 fiscal year, providing relief to government employees and problems for the industrial sector.
However, the revenue target is Rs 1.11 trillion, referring to an estimated budget deficit of Rs 582 billion, or 4.7 percent of the GDP. Finance Minister Syed Naveed Qamar presented the budget before the National Assembly after the federal cabinet formally approved it. Setting a growth target of 5.5 percent, the government announced that the budget would contain inflation at 12 percent and the gross investment to GDP ratio would be maintained at 25 percent. It also announced that foreign exchange reserves would be increased to $12 billion.
Relief: Government (civil and military) employees received 20 percent increases in basic pay and pension in the 2008-09 budget, with the minimum pension increasing to Rs 2,000. The government also announced a 100 percent increase in conveyance allowance of grades BS-1 to BS-19 employees; an increase to Rs 500 in medical allowance for employees of grades BS-1 to BS-16; a Rs 6,000 minimum wage; removal of requirement of 10 years service for benefits; and regularisation of BS-1 to BS-15 contract employees. The government also announced that subsidy on fertilisers had been increased from Rs 25 billion to Rs 30 billion. It said the subsidy on DAP fertiliser would be doubled, while subsidies on other fertilisers would also continue.
With regards to the industrial sector, the new budget increased customs duty on import of CKD/SKD sewing machines, and proposed abolishing the 15 percent duty on import of CNG buses and exempting energy savers from sales tax. It also suggested extending for two years the exemption from capital gain tax on sale of shares of companies listed on the stock exchange.
Support programme: During his budget speech, the finance minister informed the National Assembly that the ‘Benazir Income Support Programme’, with an initial allocation of Rs 34 billion, would allow cash grants of Rs 1,000 per month to all qualifying households.
According to the minister, the beneficiaries would also be provided other facilities, including employment, medical insurance and food subsidies.
Qamar also announced the establishment of a Human Resources Development Commission to review the state of unemployed people and said the national internship programme would continue.
He said the government had also approved a 10 percent quota for women in all government departments and proposed banning the purchase of physical assets, such as cars and air conditioners, as part of the economy drive. Qamar also announced that the National Accountability Bureau’s budget would be cut by 30 percent, adding that the duty on around 300 luxury items should be increased to 35 percent to discourage imports, APP reported.
The budget also proposed that Rs 500 would be charged for the import of each cellular phone and suggested increasing the duty on cars up to 1,800cc or more from 90 to 100 percent. The government also suggested increasing sales tax to 16 percent and raising federal excise duty on banking, insurance and franchise services to 10 percent. The budget also proposed to increase withholding tax on cash withdrawal from banks from 0.2 percent to 0.3 percent.
Taxable income for salaried persons was also increased to Rs 180,000. For women, it would be Rs 240,000. This would provide relief to more than 74,000 taxpayers, NNI added. The government has also proposed that different income slabs should be charged property tax differently — from five to 15 percent..
Qamar also announced Rs 2 billion to support the premier’s special initiatives for housing of low-paid government employees and proposed allocating Rs 2.6 billion for clean drinking water.
2pc tax to legalise hidden assets
ISLAMABAD: The government on Wednesday announced a special amnesty scheme for the legalisation of hidden assets after a payment of 2 percent tax. According to a Federal Board of Revenue budget document, the scheme is aimed at providing immunity to those people who have not declared their moveable and immovable assets. Taxpayers will file returns detailing income for the year and for at least subsequent three years. They will not be asked for returns of the past five years regarding declared assets. staff report
Attack legitimate, says Pentagon
WASHINGTON: The airstrike on a checkpost in the Mohmand Agency was “legitimate” and in “self-defence,” Pentagon spokesman Geoff Morrell said on Wednesday. The US State Department, meanwhile, said it was “sad to see the loss of life” among allied Pakistani troops. The US-led coalition in Afghanistan had earlier said that the airstrike had targeted militants. AFP
Defence budget increased by 7.6pc
By Sajjad Malik
ISLAMABAD: The defence budget for the 2008-09 fiscal year has been raised by 7.6 percent – from Rs 275 billion in 2007-08 to Rs 296 billion, according to the federal budget announced on Tuesday.
The increase is virtually negligible, when seen in the context of a 10.4 percent inflation and a threefold increase in fuel prices compared with last year. A 20 percent increase in salaries will also reduce the impact of the 7.6 percent increase.
Of the total Rs 296 billion, Rs 294.9 billion have been allocated to military defence and Rs 1.17 billion to defence administration. Of the military defence allocation, Rs 99 billion will be spent on employees’ related expenses. The operating expenses will be Rs 82.84 billion and the cost of physical assets Rs 87.63 billion. The army will spend Rs 25.73 billion on civil works. The defence budget will be discussed in parliament for the first time this year.
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