Govt reiterates taxing of all sectors

Provincial govts to be taken on board to legislate on agricultural income tax .

ISLAMABAD:

The federal government has reiterated its desire to tax all incomes, including the agriculture sector, in the upcoming budget and sought provinces’ help in drafting a legislation to net this vital sector.

Talking to the media, Finance Minister Dr Abdul Hafeez Shaikh said that the centre would coordinate with the provinces for the required legislation for taxing agriculture income. Under the Constitution, agriculture income tax is a provincial matter, unlike other incomes.

Shaikh said that the government has decided to consult politicians, industrialists, traders, and farmer associations for drawing up the budget. Provinces will also be taken on board for making the consolidated budget as the role of the federating units increased in terms of financial discipline after the 18th amendment and the Seventh NFC award

The federal finance minister said that the next budget would be growth-oriented, and new areas would be brought under the tax net.

The finance minister also said that the government had been trying to provide relief to the public despite increases in international oil prices. Shaikh said that the government was working on a plan to ensure relief to the consumers of petroleum products.

According to some reports, the government may reverse some increase in petroleum prices before the National Assembly session or during the first day of the session. The government increased petroleum products prices by up to 13 per cent for April.

Meanwhile, the government is learnt to have started borrowing to provide relief to masses in the shape of subsidies. Shaikh said the government would form a public holding company to devise a strategy to overcome losses of eight public sector enterprises. The government will appoint members with good reputation on the boards of the holding company, which will be responsible for restructuring these loss-making units.

He said that remittances were estimated to rise up to $11 billion during this fiscal year, while exports could reach $24-billion-mark. The minister also said that there were prospects of a bumper wheat crop with about 25 million tons, which will play an important role in the revival of national economy.

Published in The Express Tribune, April 9^th,  2011.