Pakistan

Taxes on import of luxury items not to affect common man: Dar

Finance minister says 5-10% duty imposed on 61 non-essential and luxury items

Web Desk December 07, 2015

PHOTO: AFP/FILE

ISLAMABAD: Finance Minister Ishaq Dar has said that five to 10 per cent duty on import 61 “non-essential and luxury items” would not affect the common man.

Speaking in the National Assembly on Monday, Dar said the government aimed to generate revenue to bridge Rs40 billion shortfall in revenue targets.

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Besides, regulatory duty on 289 items has also been enhanced by five per cent.

The finance minister said one per cent additional regulatory duty was imposed across the board but essential items and those required for developmental purposes were exempted.

He said the provinces were the main beneficiaries of the increased revenue collection, getting 57.5 per cent share, while the federal government will be getting 42.5 per cent.

The federal government intends to provide special shares to K-P, Sindh and Balochistan governments from the collected revenue, added Dar.

He urged political parties not to politicise economic issues as revenue generation was the key to country’s success.

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The minister exhibited confidence that the government would achieve tax collection targets for the current quarter.

Meanwhile, he added, the government was obligated to repay IMF’s debt undertaken by previous governments.

The budget deficit was 8.8 per cent when the PPP government left, Dar said, which reduced to 5.3 per cent this year with further aims to reduce it to 4.3 per cent.

COMMENTS (7)

Lolz | 8 years ago | Reply @ishrat salim: Dear in a market economy price of different products does effect each other by effecting the balance of supply and demand. You can't specifically target one brand of a product in terms of pricing as all the different brands (locally made and imported) effect each other. Moreover, the producers/importers of these luxury items(so defined by Mr. Dar) are non other the elites of this society who would be intelligent enough to transfer the burden of increased taxes to middle and lower class/common people. Another aspect of abrupt taxation is the environment of uncertainty which is created in market and which again effects the aggregate supply/demand. You are not a supporter of PML-N but you couldn't judge the intentions of a government that announced a huge taxation on a day when the whole nations/federal capital was busy in an important election activity which makes your argument either biased or dumb!

Awais | 8 years ago | Reply Yogurt.......