ISLAMABAD: Finance Minister (FM) Muhammad Aurangzeb has said there is marked increase in business transaction tax for non filers because 4.3 percent hike therein was insufficient. \u201cAt many places we have taken it to 45 percent. Purpose behind it is that the non filers should think . This is first step to abolish terminology of non filers. I don\u2019t think there may be any country where terminology of non filers may have been contrived. Outsourcing of Lahore and Karachi airports will be made. Talks with IMF are heading in positive direction. Inflation will remain in accordance with interest rate. Staff level agreement is likely to be made till July. There is proposal to impose levy from Rs 60 to 80 on petroleum products. But we are not going to impose it from the very first day. There will be made increase in it gradually during the next financial year. We will keep eye on international prices in this regard and we will take it ahead in proportion to it, he said this while addressing post budget press conference here Thursday. He held the budget for the next fiscal year revolves around five principles, including widening tax base and digitizing economy. He held said implementing a progressive income tax regime, eliminating non-filers, and protecting low-income groups are other points emphasized in the budget. Online
\nThe Finance Minister said below ten percent tax to GDP ratio is not sustainable. He emphasized enhancing it to thirteen percent in the next three years.
\nMuhammad Aurangzeb announced that tax on retailers and wholesalers will be applicable from the 1st of July. He said the Federal Board of Revenue has so far registered thirty one thousand retailers and the process of registration will continue.
\nMuhammad Aurangzeb said end to end digitization in FBR is aimed at minimizing human intervention and improving transparency and client service.
\nHe said nobody should have any objection on progressive income tax as the affluent class needs to pay more taxes.
\nThe Finance Minister said that tax has been enhanced on business transactions of the non-filers. He said this is the first step towards doing away with non-filers in the country.
\nReplying to a question, the Finance Minister said record allocations have been made for the IT sector to facilitate IT exports and youth in their startups.
\nRegarding the Small and Medium Enterprises, he said banks are back to finance SME\u2019s, IT and agriculture sectors.
\nAnswering another question, Muhammad Aurangzeb said 81 percent of Public Sector Development Programme spending has been reserved for ongoing projects, while rest of the amount will go for new projects.
\nThe Finance Minister said all the stakeholders including the allied parties are being taken on board on the privatization process. He said transactions regarding the privatization of PIA and outsourcing of Islamabad Airport will be completed by August. He said this will follow the outsourcing of Lahore and Karachi airports.
\nRegarding relief measures, Minister of State for Finance Ali Pervaiz Malik said significant allocations have been made in this respect under the Benazir Income Support Programme. Similarly, the largest chunk of subsidies will go for power sector to facilitate electricity consumers, including the protected customers using up to 200 units.
\nThe Minister of State further said additional amount has been reserved for the Utility Stores Corporation to provide essential kitchen items to the deserving people at subsidized rates.
\nThe Minister of State said there is no tax on the employees earning up to fifty thousand rupees.
\nHe said every one will have to be brought into tax net for betterment of economy. The salaried class will also have to be brought into tax net. Country cannot go ahead without it. However those drawing salary upto Rs 50000 per month will be exempted from tax. The maximum tax on this community is 35 percent.
\nExpanding tax base is our top priority, he added. 10 percent tax to GDP ratio is not tolerable. This ratio will have to be increased to level of 13 percent within 3 years. There is no other way with us except to integrate retailers and whole sale in to tax net. 31000 retailers have been registered. Retails tax net will commence from July.
\nWe will work on fixed tax in phases, he said.
\nPakistan is the 3rd largest free lancer population of the world.
\nPetroleum levy is not being increased forthwith he said adding it will be enhanced gradually.
\nWe have to give employment to youths, he said adding job is their need.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD: Finance Minister (FM) Muhammad Aurangzeb has said there is marked increase in business transaction tax for non filers because 4.3 percent hike therein was insufficient. \u201cAt many places we have taken it to 45 percent. Purpose behind it is that the non filers should think . This is first step to abolish terminology of […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-412767","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n