Prime Minister Nawaz Sharif. PHOTO: AFP/FILE
The proposal to scale back post-retirement benefits will be part of the revenue and austerity measures shortlisted by Finance Minister Ishaq Dar for the financial year 2014-15, finance ministry sources said. Dar is expected to give a detailed briefing to the premier.
According to the proposal, pensioners who draw more than one pension will only be allowed to avail the highest one.
While the number of people who avail more than one pension is not very high, any move to withdraw additional benefits is likely to be positively received by the masses. At present, people who have served on more than one official position are entitled to take as many pensions.
For instance, Gen (retd) Pervez Musharraf is drawing pensions for being both a former president and army chief. Similarly, many former judges are withdrawing multiple pensions for their stints in the high courts and the Supreme Court.
According to sources, the government is also considering to only allow people who have served for a minimum of 15 years to draw a full pension. Below this threshold, pensions may be linked with period of service, they said.
Another proposal being considered is to tax anyone who receives an annual pension worth more than Rs400,000.
The government has already ruled out the possibility of withdrawing tax exemptions available to top office-holders of the country on allowances they receives as part of their salaries. The income of a common salaried person is taxed on the basis of the gross value of the income.
Sources said the government may not offer any solace to the masses due to tight fiscal position and a proposed tax target of Rs2.810 trillion, which has been dubbed ‘over-ambitious’ even before approval by Parliament.
In a separate meeting of the National Economic Council (NEC) today (Thursday), Prime Minister Nawaz will also approve next year’s national development plan of Rs1.175 trillion. The NEC will also approve next fiscal year’s annual plan that envisages 5.1% economic growth rate and an inflation target of 8%. The council will also approve the 11th Five-Year Development Plan of the country and the Vision 2025.
An important feature of the NEC’s meeting will be the Planning Commission’s (PC) critical assessment of the economic performance for the outgoing fiscal year and the prospects of the next fiscal, said sources.
They said the PC would tell the premier about the real economic performance, particularly on FBR’s original tax target of Rs2.475 trillion. The FBR is going to miss the target and has so far achieved 16% growth in revenues against the required 28% growth.
In its working paper for NEC, PC questioned the reality of 16% growth. “After adjusting for nominal GDP growth of 11.5% and tax measures including increasing GST from 16% to 17%, withdrawal of some tax exemptions, enhancing excise duty rates, the figures reflect a marginally positive real growth in tax revenues”, it added.
The working paper also highlights soaring current expenditures and risks to economic growth in the next fiscal year.
COMMENTS (17)
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Good decision by PM if implenet in true spirit
how about decreasing foreign tour by PM and family members
@Zain: do they still need pension after making billions and zillions form this poor country?
Mr Nawaz Sharif, how about stopping the billions of rupees tax rebate that is given to "Political officials" of Pakistan... Your strategy is selfish and great, give yourself rebates because you have authority and take everything from normal Pakistanis.
Without enacting a single law in over a year in power, running state business like personal and a personal fortune of billions....He has the audacity to define "priviledged" and take away their hard earned pensions.
So the idea is to cut General Musharaf's pension??
My monetary benefit in my retirement, where is it? I have been filing Tax Return to the Government of Pakistan more than fifty years how come I Do Not receive any monetary benefit. I am a common citizen of this country. Tax Return Filers must receive Monetary Benefit too beside Government Employee, Military, Civil Servants, " Why do I have to pay for their pension or on their retirement? " Please consider me, the retire citizen of Pakistan among the Equals. Think about it, I pay in my Old Age for pensions of Civil Servants? This is Not Fair, I too am a Citizen.
@Lobster: PM, like all other elected officials (MNAs, MPAs, Senators, PM, CM) has no pension. Governors and Presidents have pensions as state representatives.
This statement sums it up for me.
"The government has already ruled out the possibility of withdrawing tax exemptions available to top office-holders of the country on allowances they receives as part of their salaries. The income of a common salaried person is taxed on the basis of the gross value of the income."
While the already burdened middle class is being taxed heavily both directly & indirectly, the elite class enjoys tax benefits. Wow!! These jagirdaars and wadera's think the state money is their own money and spend it like anything while we commoners think twice before earning our hard earned money.
One austerity measure could be to not to buy a 22 crore Rs car for the Prime Minister and discontinuing the high level of security protocol given to the Sharif family on which many crore Rs are spent every year.
Mr. Sharif, How about cutting the number of staff in the security detail of you and your family for austerity?
to save money for buying more Rs. 220 million BMWs
@fed up: How about cost cutting on lavish foreign trips with the royal family entourage? How about taxing the Mian Manshas, and Shakil ur Rehmans? How about reducing your massive commissions from the state owned projects? How about bringing your illegal dollars back to the country from UAE, UK, USA, and Switzerland? The list goes on and on.
Instead Just pay your taxes and bring all your money back that you have invested in KSA, UK and India.
You already don't have any defense or foreign ministers. Please get quality people to help you in these fields.
I wonder if the care taker CM and PM draw full pension? This is ridiculous to allow dual pensions or pensions without some years of contribution
How about buying less bmw's from state money?