'Over 50 taxes can be abolished without harming exchequer'
Punjab minister insists move will not harm public exchequer
Representational image. PHOTO: REUTERS
LAHORE:
Consultation with stakeholders for preparing the budget is the government’s top priority as economic revival is not possible without their participation, remarked Punjab Minister for Finance Makhdoom Hashim Jawan Bakht.
Speaking to businessmen at the Lahore Chamber of Commerce and Industry (LCCI), the provincial minister said a major part of the Annual Development Plan (ADP) of Punjab was being spent on those projects that would promote trade and economic activities.
An internal study had identified more than 50 taxes that could be abolished, which would not harm the exchequer or the ease of doing business index, he pointed out. The National Tax Council had been asked to play its role in tax harmonisation, he added.
“We want to enhance the tax-to-GDP ratio but not at the cost of economy,” the minister remarked.
He emphasised that digitisation would help improve ease of doing business ranking, adding that work on the e-payment system was under way and it would soon be implemented.
The minister said revival of the construction sector was a must, adding that 16% tax had been levied on the sector last year, which was withdrawn later and a flat rate was imposed. Speaking on the occasion, LCCI President Irfan Iqbal Sheikh drew attention of the minister to the unexpected reduction in the ADP expenditure from Rs576 billion in 2017-18 to Rs350 billion in the budget for 2019-20.
He stressed that it had negatively impacted the ongoing infrastructure projects and other development activities in the province, leading to an economic slowdown.
The LCCI chief said sales tax on services was being charged at different rates by the Punjab Revenue Authority (16%) and the Sindh Revenue Board (13%), which created an environment of competition among the provinces. A uniform rate of sales tax on services should be applied by all the provinces, he suggested.
Published in The Express Tribune, February 11th, 2020.
Consultation with stakeholders for preparing the budget is the government’s top priority as economic revival is not possible without their participation, remarked Punjab Minister for Finance Makhdoom Hashim Jawan Bakht.
Speaking to businessmen at the Lahore Chamber of Commerce and Industry (LCCI), the provincial minister said a major part of the Annual Development Plan (ADP) of Punjab was being spent on those projects that would promote trade and economic activities.
An internal study had identified more than 50 taxes that could be abolished, which would not harm the exchequer or the ease of doing business index, he pointed out. The National Tax Council had been asked to play its role in tax harmonisation, he added.
“We want to enhance the tax-to-GDP ratio but not at the cost of economy,” the minister remarked.
He emphasised that digitisation would help improve ease of doing business ranking, adding that work on the e-payment system was under way and it would soon be implemented.
The minister said revival of the construction sector was a must, adding that 16% tax had been levied on the sector last year, which was withdrawn later and a flat rate was imposed. Speaking on the occasion, LCCI President Irfan Iqbal Sheikh drew attention of the minister to the unexpected reduction in the ADP expenditure from Rs576 billion in 2017-18 to Rs350 billion in the budget for 2019-20.
He stressed that it had negatively impacted the ongoing infrastructure projects and other development activities in the province, leading to an economic slowdown.
The LCCI chief said sales tax on services was being charged at different rates by the Punjab Revenue Authority (16%) and the Sindh Revenue Board (13%), which created an environment of competition among the provinces. A uniform rate of sales tax on services should be applied by all the provinces, he suggested.
Published in The Express Tribune, February 11th, 2020.