The Committee also expressed concern about the collection of dollar-denominated fees on ATM and VISA card transactions.
ISLAMABAD:
A parliamentary panel has banned Islamic banks from requiring abayas on their female staff and called for a modest national dress code for all, regardless of gender.
The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, on Wednesday looked into complaints over dress code instructions in some banks, particularly those running Islamic operations.
Senator Dr Zarqa Suharwardy Taimur informed the committee that female employees would be forced to wear abayas, although there was no such compulsion for male employees who were free to dress as they wished.
Senator Sherry Rehman argued that no employee should be forced to adopt a specific dress code. She noted that a shalwar kameez, worn by former Prime Minister Benazir Bhutto, was also sufficient for other women, adding that the state had defined a 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 issued to all banks.
The panel said it only ordered adherence to a modest dress code and never imposed specific attire. It ordered all banks to submit their dress code policies and asked the SBP to issue updated guidelines to ensure that no employee is subjected to unnecessary hardship.
The committee also expressed concern about the collection of dollar-denominated fees on ATM and VISA card transactions as well as SMS alert fees imposed on bank customers.
The committee also addressed issues relating to taxes levied on electricity bills and questions regarding salaries and promotions of Senate employees.
During the meeting, Senator Kamil Ali Agha raised the issue of taxes collected from electricity bills, saying that the Federal Board of Revenue (FBR) had collected Rs620 billion through electricity bills and had effectively transformed the mechanism into a major source of revenue.
He said the burden of taxes on electricity consumers continued to increase and many people found themselves facing serious financial difficulties.
He added that in some cases, a consumer receiving a power bill of Rs 13,000 paid almost Rs 7,000 in taxes, while bills of Rs 8,000 included up to Rs 4,000 in taxes.
Responding to these concerns, the Federal Board of Revenue (FBR) chairman said the tax collected from electricity bills was primarily a sales tax and was in line with international tax 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 was collected through electricity bills, including Rs420 billion as sales tax.
He said significant tax exemptions had already been granted on electricity bills, but warned that if the tax system was reviewed in the future, additional taxes could also be considered.
The committee also discussed issues related to salaries and promotions of Senate employees. The Accountant General of Pakistan informed him that there was a Supreme Court verdict on the issue and as per the opinion of the Ministry of Justice, the court decision could not be violated.
However, Mandviwalla argued that Senate and National Assembly employees were governed by parliamentary laws rather than general government regulations.
He said Parliament had its own laws, which were recently enacted, and no institution had the power to interfere in the internal affairs of the Senate and the National Assembly.
He pointed out that Parliament had never ordered that the salary of an SC judge be withheld and hence the judiciary should also follow the laws made by Parliament.
He asserted that courts could not stop salaries or promotions of Senate and NA employees. The President asked the Accountant General of Pakistan to ensure implementation of parliamentary laws, warning that any failure could be referred to the Privileges Committee.
The committee also looked into 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 charged between 30 paisas and Rs2.50 per SMS. He claimed that the total amount collected through SMS charges was nearly Rs 200 billion per year.
Mandviwalla observed that even customers who did not need SMS alert services received messages and were billed accordingly. The SBP governor told the commission 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 levied through bundled service agreements.
The committee ordered that SMS alerts be sent only to customers who specifically need the service and that unnecessary messages not be sent simply to generate additional charges.
The committee also expressed concerns over dollar fees on ATM and Visa card transactions and requested more details on the issue.
