‘Gradual effort will overcome economic challenges’

Government trying to bring new sectors into the tax net, instead of taxing the already taxed sectors: Hafeez Shaikh.


Express May 21, 2011

KARACHI:


The budget is not a remedy of all economic problems of Pakistan; rather it’s only a framework for the next one year, according to Federal Finance Minister Abdul Hafeez Shaikh.


Speaking at a conference about the upcoming budget on Saturday, Shaikh said, “I am not saying that all is good in economy,” he said. “What I am saying is that there are obvious challenges to the economy of Pakistan that many of us know and that we have to resolve gradually.”

On broadening the tax net, Shaikh said that government was trying to bring new sectors into the tax net, instead of taxing the already taxed sectors. “Government is cognizant of the fact that burdening the people in tax net is not the solution so government will not levy new taxes on the existing taxpayers,” said Shaikh.

Federal Bureau of Revenue (FBR) had identified 0.7 million potential tax payers and notices had been issued to some 55,000 individuals, requesting them to register themselves in the tax net, he said.

According to him, the government had done a lot of work on streamlining sales tax and many new sectors were being brought into the sales tax regime in the country.



Published in The Express Tribune, May 22nd, 2011.

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COMMENTS (2)

Moazzam | 10 years ago | Reply Wealth tax is the need of the hour. Our elites have amassed too much wealth and this gap between the rich and the poor has to be minimized now, whoever speaks against wealth tax in Pakistan at sundry forums secretly supports the elites’ ill agenda to stay away from the wrath of FBR; the collection of wealth tax is in practice in India and France but Pakistan is richer and more advanced than that countries that’s why our worthy, literate, and genius politicians think Pakistan doesn’t need wealth tax. Enough is quite enough now, these hypocrites of politicians shall allow FBR to impose wealth tax on elites, that tax is specifically for elites. Musharraf abolished wealth tax in 2002 because army generals were getting nabbed for holding huge wealth by FBR then, those who argue Musharraf wasn’t corrupt can know his corruption is so exposed by just this act of his.
meekal ahmed | 10 years ago | Reply Well, we shall see what happens Mr. Minister in your next budget. FBR can issue all the notices it wants; nothing will happen and certainly not anything in the forthcoming fiscal year. You can't implement reforms "gradually". If you want results, reforms need to be bold, comprehensive and up-front. Even then, the results will only be seen after a lag.
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