The committee also expressed concern over the recovery of dollar-denominated fees on ATM and VISA card transactions
ISLAMABAD:
A parliamentary panel has restricted Islamic banks from imposing abayas on their female employees and called for a modest national dress code for all regardless of gender.
The Senate Standing Committee on Finance and Revenue, headed by Senator Saleem Mandviwalla, on Wednesday took up complaints about dress codes in certain banks, especially those running Islamic operations.
Senator Dr. Zarqa Suharwardy Taimur informed the committee that female employees were allegedly forced to wear abayas, although there was no such compulsion for male employees who were free to dress as they chose.
Senator Sherry Rehman argued that no employee should be forced to adopt any particular attire. She noted that a shalwar kameez, as worn by former prime minister Benazir Bhutto, was also sufficient for other women, adding that the state had defined national dress for both sexes.
State Bank Pakistan (SBP) Governor Jameel Ahmed said the panel had also issued similar guidelines last year, which had already been communicated to all banks.
The panel said it had only directed adherence to a modest dress code and had never mandated any specific attire. It directed all banks to submit their dress code policies and directed the SBP to circulate updated guidelines to ensure that no employees were subjected to unnecessary duress.
The committee also expressed concern over the recovery of dollar-denominated fees on ATM and VISA card transactions as well as SMS alert fees imposed on bank customers,
The committee also considered issues related to taxes collected through electricity bills and issues related to salaries and promotions of Senate employees.
During the meeting, Senator Kamil Ali Agha raised the issue of taxes collected through electricity bills and stated that the Federal Board of Revenue (FBR) had collected Rs620 billion through electricity bills and had effectively turned the mechanism into an important source of revenue.
He said that the burden of charges on electricity consumers was constantly increasing and claimed that many people were being pushed into serious financial difficulties.
He added that in some cases, a consumer who received an electricity bill of Rs13,000 paid almost Rs7,000 in tax, while bills of Rs8,000 included up to Rs4,000 in tax.
Reacting to the concerns, the chairman of the Federal Board of Revenue (FBR) said that the tax collected through electricity bills was primarily sales tax and was in line with international taxation practices.
He said sales tax was levied on almost all goods and services consumed by households and electricity consumption was no exception. Langrial informed the committee that a total of Rs 476 billion had been collected through electricity bills, including Rs 420 billion in sales tax.
He said significant tax exemptions had already been given on electricity bills, but warned that if the tax system was revised in the future, additional taxes could also be considered.
The committee also discussed issues regarding salary and promotions for Senate staff. The Auditor General of Pakistan stated that there was a Supreme Court judgment in the case and that, in the view of the Law Ministry, the court’s decision could not be violated.
However, Mandviwalla maintained that staff in 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 reinstated and no institution had the authority to interfere in the internal affairs of the Senate and the National Assembly.
He noted that Parliament had never ordered the salary of an SC judge to be withheld and therefore the judiciary should also respect laws passed by Parliament.
He argued that the courts could not stop the salaries or promotions of Senate and NA staff. The Speaker directed the Auditor General of Pakistan to ensure implementation of parliamentary laws and warned that any non-compliance could be referred to the Privileges Committee.
The committee also reviewed complaints about charges levied 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 charged between 30 paisas and Rs2.50 per SMS. He claimed that the total amount collected through SMS charges amounted to nearly Rs 200 billion annually.
Mandviwalla noted that even customers who did not need SMS alert services were sent messages and charged accordingly. The SBP governor told the committee that SMS charges were not imposed by banks but by telcos.
Senator Qadir claimed that the actual cost of an SMS was around 35 paisas and alleged that additional charges were levied through bundled service schemes.
The panel directed that SMS alerts should be sent only to customers who specifically need the service and unnecessary messages should not be sent simply to generate extra charges.
The committee also expressed concern over dollar-based fees on ATM and Visa card transactions and sought further details on the matter.
