Mini-budget
Claims Rs272b out of Rs343b taxes refundable; no sales tax slapped on fertilizers, tractors, medicines: Says efforts on to uplift the poor
ISLAMABAD
Finance Minister Shaukat Tarin has claimed that speculations regarding affecting common man through the Finance (Supplementary) Bill, 2021 are baseless as it is just aimed at reviewing tax exemptions worth Rs343 billion.
Addressing a press conference along with Minister of State for Information and Broadcasting Farrukh Habib and Federal Board of Revenue Chairman Dr Muhammad Ashfaq on Thursday, Tarin said that out of Rs343 billion, Rs272 billion taxes are refundable or adjustable, while the actual worth of new taxes is Rs71 billion out of which Rs69 billion taxes are about luxury items.
The minister added the Rs112 billion tax exemptions on machinery, and Rs160 billion tax exemptions on the pharmaceutical sector will totally be refundable or adjustable. “We have proposed only Rs2 billion tax exemptions on the items that can be related to the common man which would have a very negligible impact on inflation,” he said.
The minister said that no sales tax has been imposed under the bill on tractors, medicines and fertilizers. He said the top priority of the government is to strengthen institutions by making them independent.
He said the International Monetary Fund (IMF) had asked the government to impose Rs700 billion new taxes but “we defended not to impose taxes on a number of food and other essential items and brought it down to Rs343 billion.” He said in the past unjustified taxes were exempted on various items that were being withdrawn.
The minister said that under the State Bank of Pakistan (Amendment) Bill 2021, the SBP will be held accountable to the parliament, strengthening the country’s law making institute. He said, “Our government has not borrowed a single rupee from the State Bank during the last two-and-a-half years.”
Separately, addressing a ceremony regarding the interest free loan scheme under Kamyab Pakistan Programme on Thursday, Shaukat Tarin said the government is making all-out efforts for the social and economic development of the downtrodden segments of the society.
He said that it is an important day for the poor segments of the society, as the loans will be provided to those who do not have access to banks and the prime minister has issued special directives in this regard. He said loans are being provided to all segments without any discrimination. He said, “We are committed to fulfil the dreams of the poor.”
The finance minister said that in order to ensure the provision of employment with self-respect, interest free loans are being provided to the farmers and for “Apna Rozgar” and “Apna Ghar” schemes. He said that loans amounting to Rs4 billion have been disbursed in 300 cities of the country.
He said that Pakistan under the leadership of Imran Khan is moving towards a welfare state based on the principles of the State of Madina. He added that the incumbent government has laid the foundation of the welfare state to ensure the poor of the country d0 not suffer any more and have opportunities available to earn respectable livelihood for themselves.
The federal minister said that initially four million households will be provided financial assistance under the programme, which would be extended to six million and then seven million households gradually. He was of the view when this program spreads across the country, it would bring prosperity, adding, “When the low-income segment of society becomes prosperous then we can say that real Pakistan or Pakistan of Quaid-e-Azam has been established.”
He said that the poor of the country had always been shown dreams of food, clothing, and shelter and were made to realise that when the economy grows it would have a trickle-down effect on them. However, the minister lamented, even after 74 years since Pakistan came into being, this could not happen to date.
He said that the prime minister does not want the poor to wait for the trickle-down effect, so he had urged for this programme so that poor people get opportunities to earn respectable livelihood for themselves without hurting their self-respect.
Tarin said that under the Kamyab Pakistan Programme, big banks would wholesale loans to small and microfinance banks, which provide loans to deserving people on a retail basis. Under the programme, he added, the farmers would be provided interest-free loans up to the tune of Rs150,000 for one crop and Rs300,000 for two crops, and Rs200,000 for tractors.
Likewise, Rs500,000 loans would be provided to a household for setting up a business, and Rs2 million to Rs2.5 million for building a house. In addition, Sehat cards are provided to ensure health coverage for the poor.
He said this is a complete package to target the poor of the country, adding that loans are being provided purely on a merit basis with complete transparency irrespective of affiliations with any party, group, or tribe. He also appreciated all the stakeholders, small and large banks for making this big program successful within a short span of time.
He said that even the World Bank was suspicious of how this could happen but later conveyed that it would take guidance from Pakistan to replicate the programme in other countries when it is successful. TLTP
