ISLAMABAD (92 News) – Finance Minister Mifta Ismail has said that it was necessary to revive the IMF program.
Concluding the discussion on the budget for the next financial year, he said that the government decided to impose super tax on the affluent class to end the dependence on foreign aid and reduce the budget deficit to take the country towards economic sovereignty. Is. Individuals and companies earning Rs 15 crore will have to pay an additional tax of one per cent, an additional tax of two per cent on income of Rs 20 crore, three per cent on income of Rs 25 crore and an additional tax of four per cent on income of Rs 30 crore. This tax will be for a period of one year.”
The Finance Minister said that 13 high-income sectors including oil and gas, cigarette, cement, LNG terminals have also been identified for imposing 10 per cent super tax on income of Rs 30 crore. He clarified that it would be a one-time tax.
“There are nine million retail shops and it has been decided to bring 2.5 million of them under the tax net. Fixed tax will be imposed on them. Only twenty two gold shops out of thirty thousand are registered. A fixed tax will be levied on gold shops up to 300 square feet, while the sales tax on large jewelery shops has been reduced from seventeen to three percent. He added.
He said that withholding tax on sale of jewelery has been reduced to one per cent from the existing four per cent. “Car dealers, restaurants and house builders will also be levied a certain tax. Tax is levied on income and not on consumption. Therefore, these measures will not lead to inflation.”
The Minister said that the tax revenue target for the next financial year has been increased to Rs.7470 billion by incorporating various suggestions and measures. 4373 billion rupees will be distributed to the provinces as their share. The government has tried to reduce the burden on the weaker sections of the society. Sugar, flour and ghee will be made available at subsidized rates to people throughout the year at utility stores. He told the House that so far one million people have registered to take advantage of the cheap petrol and cheap diesel scheme.
The minister also announced incentives for various sectors and said that exemption from the condition of withholding tax and details would be given for IT companies with revenue below Rs eighty lakh. “Tax charged from oil marketing companies at the rate of 0.75 per cent has been brought back to 0.5 per cent. Overseas Pakistanis holding NICOP cards will be included in the list of active taxpayers. Income on plots belonging to the families of martyrs and war wounded is exempted from tax. Relief has also been given to leather and surgical items.
The Finance Minister said that the government has kept the country safe from default and know that the country will be taken towards development.
“The previous government took an unprecedented loan of twenty thousand billion rupees in four years. How can a country remain financially sovereign by taking huge debt, so we have to revive the stalled IMF program. After consultation with all the allies, difficult decisions were taken in the national interest. Given the current account deficit which will be $17.50 billion, we have to agree to the recommendations of the IMF to save the country from default.
Miftah Ismail said that this is the most farmer friendly budget ever presented in the last two decades. This farmer friendly budget will generate long term benefits for the country and will help in promoting agricultural products besides achieving self-sufficiency in edible oil, wheat and other crops.
Talking about the recommendations made by the Senate, he said that most of the suggestions of the Upper House have been incorporated. Senate recommendations on pharmaceutical goods will be considered in the next budget.
The House also offered fate for those killed in the recent earthquake in Afghanistan. The House prayed for the speedy recovery of former MNA Daniyal Aziz, who was injured in the road accident.
The house will now meet again on Monday at 5 pm