News
Friday, June 14, 2013
Pakistan needs foreign inflows; will go to IMF on own terms: Dar* Finance minister says no tax has been imposed on essential food items
* Only rich have been taxed in the budget
By Sajid Chaudhry
ISLAMABAD: Federal Minister for Finance Ishaq Dar on Thursday said that Pakistan needs foreign inflows and if it required fresh International Monetary Fund (IMF) programme it would not be on dictated terms.
Dar said that the proposed 0.5% Income Support Levy would be applicable on stock market shares, cash and luxury vehicles owned by the rich. Those having foreign income which is not taxable would be given an opportunity to pay 0.5% to contribute to the national cause of helping the poor of the poorest. The minister said blockade of secret funds would be applicable to 34 institutions, including 16 federal ministries, with immediate affect. The AGPR has been instructed to block all such payments from secret fund.
From July 1 onwards, after approval of the Finance Bill 2013, there would be no allocation in this head for these 34 institutions. Addressing the post-budget press conference at the Planning Commission, Dar said that while clearing Rs 503 billion circular debt, the government would re-negotiate the terms and conditions with private power producers.
Replying to a question on minimising electricity load shedding, the finance minister said that Rs 13 billion to Rs 19 billion per month support to the power sector could help end load shedding within 40 months. However, the government has decided to take difficult decision of clearing Rs 503 billion circular debt within the next 60 days to end load shedding. Dar clarified that no tax has been imposed on essential food items and only the rich have been taxed in the budget. The government, he said, has also identified 0.5 million rich to bring them into the tax net in the first phase.
He further said that no tax has been imposed on Hajj pilgrims, only fee of Hajj operators have been increased from Rs 2000 per pilgrim to Rs 3500. He stated that the Income Support Levy would be a contribution by the rich for the welfare of the most poor in the country. Imposition of 0.5% levy on persons having immovable assets would help generate few billions only, he claimed.
The minister said that this year the government has increased the taxes and would examine the increase in the salaries in the next fiscal year. The government, he said, can increase the salaries by printing currency notes, but this has not been done due to the inflationary impact. Dar said the previous government had made 20% increase in salaries of the government servants two months ago and there is no justification to increase them now.
Dar warned that the government would not allow a few thousand rich to blackmail or play with the future of the 185 million Pakistanis. He took serious view of the media reports that foreigners have been dictating government in budget-making process, saying “no black or white” can frighten us.
Courtesy www.dailytimes.com.pk