Senate Standing Committee on Finance, Revenue and Economic Affairs on Thursday approved budget proposals including increasing limit of digital payment, tax on filter manufacturing industry, other than automotive, and reduced rate of tax on IT sector. The committee in its third consecutive meeting, chaired by Senator Saleem H. Mandviwalla, discussed the Finance Bill 2022-23. The committee has approved the government’s proposals to increase digital payment limit from 250,000 to 1,000,000 and also approved reduction in tax rate for IT sector from 1pc to 0.25pc. The committee also approved proposal to withdraw tax exemption on insurance schemes. Addressing the meeting, Senator Farooq Naik said that no one should get tax exemption – eliminate all tax exemptions. The Pakistan Customs representative briefed the committee that the tax on filter manufacturing industry, other than automotive, was 16 and 20pc but now it came down to 5pc and other than industry, it was 3 and 5pc which has been converted to 0pc. The committee unanimously approved the tariff on filter manufacturing industry other than automotive sector at 5pc. The committee also approved proposal to abolish tax amnesty for sick industries. The FBR representative briefed the committee about another relief measure that was to rationalize the limit of depreciable asset, keeping in view of inflation adding that the limit exceeds from 2.5m to 5m. The chairman of the committee appreciated the proposed measure but recommended that the limit should be enhanced to 7.5m. Chairperson, National Tariff Commission (NTC), Robina Ather while briefing the committee informed that the commission has rationalized tariff for packages industry and dyes that used in textile industry. The committee approved new tariff commission measures regarding the packages and textile industry. Meanwhile, the Leader of the Opposition, Senator Shahzad Waseeem walked out from the committee in protest against the Finance Minister’s absence from the meeting. He also highlighted the raise in the fuel prices. While briefing the capital gains amendment, Minister of State for Finance, Dr Aisha Ghaus Pasha informed the committee that the purpose of the tax on capital gains is to prevent from such investment which hold many years and give less benefit. Replying to a question regarding relief measures in the budget, she said that for the promotion of agriculture sector, the current government withdrew the sales tax on agriculture tractor, agriculture seeds. She said that we have to shift the investment on productive side, the government focused on increased direct taxes and reduce indirect tax because the government do not want more inflation. Senator Muhammad Talha Mahmood said that the construction industry linked with around 50 industries that is why we have to support this sector to create employment and reduce inflation. The chairman committee said that committee unanimously submitted the proposal to the FBR. The committee also considered the proposal of Bakers Association regarding tax on breads and sweets and directed FBR officials to resolve their issue. However, the committee opposed giving income tax exemption to persons working in projects/grants abroad. The meeting was attended by senators Farook Ahmed Naek, Muhammad Talha Mahmood, Zeeshan Khanzada, Shahzad Waseeem and Anwaar Ul Haq Kakar.