June 23, 2005	Thursday	Jumadi-ul-Awwal 15, 1426

KARACHI, June 22: With the adoption of the Sindh Finance Bill 2005 into a law on Wednesday by the provincial assembly, the business of the current budget session concluded and the House was prorogued.

Speaker Syed Muzaffar Hussain Shah read out the order of the Governor to prorogue the session which began on June 10.

Earlier, the finance bill was taken up, clause by clause, and passed into a law, with a majority of votes, amid thumping of desks. A few amendments which were proposed by the opposition members, Syed Murad Ali Shah and Ms Shazia Marri, were rejected by the House.

Finance Minister Syed Sardar Ahmad, who earlier laid the schedule of authorized expenditures for the year 2005-06, formally moved the finance bill aimed at rationalizing certain taxes and providing relief in certain taxes and fee in the province and to amend certain laws.

Initiating general discussion, he said the purpose of the bill was to provide relief whatever possible by rationalization, reduction and giving exemptions in taxes.

Dr Sikandar Mandhro said in Clause-1 the bill had been mentioned as act. Without its adoption by the House, how could a bill be called an act and as such it should be referred back.

Syed Murad Ali Shah said it should be referred to the select committee before consideration or the House be adjourned for an hour as it had been a practice in the past that an opportunity is given to the members to submit amendments to the bill.

Ms Shazia Marri said in the budget, a relief had been provided to beauty parlours, slimming clinics and laundries which was only two per cent.

She stated that 15 per cent GST on services be reduced to 10 per cent and its base be enlarged for netting other service providers, including real estate businesses.

Dr Sharf-un-Nisa Leghari said instead of beauty parlours and slimming clinics, relief should have been provided to farmers by providing them subsidy in fertilizer and power rates.

Mr Rafique Engineer pointed out that a correction in handwriting had been made in the bill, and said the bill was a legal document whose language should be clear.

Ms Humera Alwani said in the budget, relief should have been given to sugarcane growers who were discouraged and were switching over to other crops as a result, sugar rate had increased from Rs 17 kg to Rs 28 kg.

Ms Shama Mithani said in the budget middle class had totally been ignored. Syed Qaim Ali Shah said the finance minister had failed to explain the finance bill.

Referring to different clauses, he said in certain cases, instead of rationalization of duty, it had been increased and pointed out that in the case of hotel occupancy tax, and registration of security services, the fee had been increased from Rs100,00 to Rs200,000.

He said that because of poor law and order situation, people were acquiring security services and they would have to pay more.

Leader of the Opposition Nisar Ahmad Kuhro said already his colleagues had pointed out various technical anomalies in the bill. He said the budget could not be called a tax-free budget.

He said by cut in sugarcane cess from Rs 1 to 50 paisas would affect construction of roads in sugarcane growing areas.

Mr Khuhro said the budget was not in favour of growers but goes against them.

Finance Minister Sardar Ahmad, winding up general discussion on the bill, said the hotel tax had been reduced after 9/11 due to falling of occupancy of rooms but now it had only been restored to the original position of 70 per cent.

Besides he said only those hotels fall in the tax net which had been registered and not those which were in villages and small towns.

He said he never called it a tax-free budget as no budget could be a tax free and in the present budget, no new tax had been imposed which also meant a tax free.

He said that the registration fee for security agencies had been increased from Rs 100,000 to Rs 200,000 only to check their mushroom growth and only good people of repute could come into its business.

Besides, the finance minister said, three indirect taxes on recruitment agencies had been withdrawn.

Syed Murad Ali Shah moved a motion to refer the bill to the select committee which was rejected by voice votes. Ms Shazia Marri who also moved a motion to circulate the bill to elicit public opinion was also rejected by voice votes.

Later, the finance bill was moved by the finance minter, clause by clause with amendments in three clauses, and it was approved with majority votes at 4.5 pm.

Mr Irfan Marwat expressed thanks on behalf of the treasury benches to the Speaker for conducting the House in an efficient manner.

Makhdoom Jameeluz Zaman, by a point of order, drew the attention of the Speaker towards the detention of their colleague Zahid Bhurgari and said the Speaker had ignored it, saying it was sub judice as his case was in the court.

Mr Hameeduallah Khan tried to take up the matter of failure of the police to arrest the killers of Ex-MPA Aslam Mujahid, but failed to get a response as the speaker read out the order of the Governor to prorogue the session.

Today when the House met at 11.20am with Mr Mohammad Hussain in the chair, Syed Murad Ali Shah pointed out that there was no mention of the privilege motion of the opposition in the order of the day.

He said under Rule 19(1), no matter could be discussed during budget discussion, but there was a tradition to move motions on the day of adoption of the finance bill. Syed Qaim Ali Shah also gave arguments in support of the move.

Syed Shoaib Bokhari opposed it saying there was no such tradition during the tenure of present government.

When there was a discussion about allowing motions, Speaker Syed Muzaffar Hussain Shah took the chair and gave a ruling that the matter would be take up after the question hour.

After Zuhar prayers when the House resumed proceedings at 2.35pm, the Speaker pointed out that there were four privileges motions with the Secretariat.

Syed Murad Ali Shah said that he would like to move a fresh privilege motion out of turn. He was asked to seek the permission of the House by making a motion which was defeated by 42 against 72 votes.

QUESTION HOUR: The Sindh Assembly was informed on Wednesday by the chief minister that six army personnel of the rank of brigadiers, four of them retired, were serving as heads of various provincial government departments.

He was responding to a question from the opposition’s Humera Alvani during Question Hour.

To another question, he informed the House that the provincial government would purchase 500 flats in Landhi from the Pakistan Housing Authority at a total cost of Rs348.44 million rupees. These flats would be allotted to the Sindh Secretariat employees.

The amount had been released to the finance department for this purpose, said the Sindh chief minister, Dr Arbab Ghulam Rahim, in reply to a question from Humera Alvani. He said the deal for the purchase of flats was being finalized through a committee constituted by the provincial government.

The Sindh chief minister also maintained that there was no need to establish district-wise setup of inter-provincial coordination department to coordinate between the already established departments of the province.

He said this in reply to a question from leader of the opposition Nisar Khuhro.

The chief minister informed the House that Inter-Provincial Coordination was a newly-created department. Under Rule-3 of Sindh Government Rules of Business, it was required to be included in Schedule-II.

A notification in this regard would soon be issued after its summary is approved by the governor for establishing liaison for better communication, coordination, resolution with other provinces and the federal government.

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