Committee also expressed concern over the recovery of dollar-denominated charges on ATM and VISA card transactions
ISLAMABAD:
A parliamentary panel has restricted Islamic banks from imposing abayas on their female staff, and called for following a modest national dress code for all irrespective of gender.
The Senate Standing Committee on Finance and Revenue, presided over by Senator Saleem Mandviwalla, on Wednesday took up complaints regarding dress code instructions at certain banks, particularly those running Islamic operations.
Senator Dr Zarqa Suharwardy Taimur informed the committee that female employees were allegedly being compelled to wear abayas, although there was no such compulsion for male staff who were free to dress as they chose.
Senator Sherry Rehman argued that no employee should be forced to adopt any specific attire. She remarked that a shalwar kameez, as worn by ex-prime minister Benazir Bhutto, was also sufficient for other women, adding that the state had defined national dress for both genders.
State Bank Pakistan (SBP) Governor Jameel Ahmed said that the panel had also issued similar guidelines last year, which had already been conveyed to all banks.
The panel said it had only directed observance of a modest dress code and had never mandated any specific attire. It directed all banks to submit their dress code policies and instructed the SBP to circulate updated guidelines to ensure that no employee was subjected to unnecessary compulsion.
The committee also expressed concern over the recovery of dollar-denominated charges on ATM and VISA card transactions as well as SMS alert charges imposed on bank customers,
The committee also took up issues relating to taxes collected through electricity bills and matters concerning the salaries and promotions of Senate employees.
During the meeting, Senator Kamil Ali Agha raised the issue of taxes collected through electricity bills, stating that the Federal Board of Revenue (FBR) had collected Rs620 billion through electricity bills and had effectively turned the mechanism into a major source of revenue.
He said the burden of taxes on electricity consumers was continuously increasing and claimed that many people were being pushed into severe financial hardship.
He added that in some cases, a consumer receiving an electricity bill of Rs13,000 was paying nearly Rs7,000 in taxes, while bills of Rs8,000 included up to Rs4,000 in taxes.
Responding to the concerns, the Federal Board of Revenue (FBR) chairman said the tax collected through electricity bills was primarily sales tax and was in line with international taxation practices.
He said sales tax was imposed on almost all goods and services consumed by households and electricity consumption was no exception. Langrial informed the committee that a total of Rs476 billion had been collected through electricity bills, including Rs420 billion in sales tax.
He said substantial tax exemptions had already been provided on electricity bills, but warned that if the taxation system was reviewed in the future, additional taxes could also be considered.
The committee also discussed issues relating to the salaries and promotions of Senate employees. The Accountant General of Pakistan informed it that a Supreme Court verdict existed on the matter and that, according to the opinion of the Ministry of Law, the court’s decision could not be violated.
However, Mandviwalla maintained that employees of the Senate and National Assembly were governed by parliamentary laws rather than general government regulations.
He said parliament had its own laws, which had recently been re-enacted, and no institution had the authority to interfere in the internal affairs of the Senate and National Assembly.
He remarked that parliament had never directed that the salary of a SC judge be withheld and therefore the judiciary should also respect laws enacted by Parliament.
He asserted that courts could not stop the salaries or promotions of Senate and NA employees. The chairman directed the Accountant General of Pakistan to ensure implementation of parliamentary laws, warning that any failure to comply could be referred to the Privileges Committee.
The committee also reviewed complaints regarding charges imposed on ATM and VISA card transactions as well as SMS alert services provided by banks.
Senator Abdul Qadir informed the committee that bank customers were being charged between 30 paisas and Rs2.50 per SMS. He claimed that the total amount collected through SMS charges amounted to nearly Rs200 billion annually.
Mandviwalla observed that even customers who did not require SMS alert services were being sent messages and charged accordingly. The SBP governor told the committee that SMS charges were not imposed by banks but by telecom companies.
Senator Qadir argued that the actual cost of an SMS was around 35 paisas and alleged that additional charges were being collected through bundled service arrangements.
The panel directed that SMS alerts should be sent only to customers who specifically require the service and unnecessary messages should not be sent merely to generate additional charges.
The committee also expressed concern over dollar-based charges on ATM and Visa card transactions and sought further details on the matter.
