Govt may impose Rs1,500 billion new taxes in next budget

ISLAMABAD: The government has received a proposal to impose Rs 1,500 billion new taxes in the upcoming budget and it has been decided that the non-filers will have to pay two percent tax on the sale and purchase of property.

This was revealed by Finance Minister Muhammad Ishaq Dar while giving a briefing to the cabinet on the budget proposals for the year 2016-17. Finance Division Secretary Dr Waqar Masood Khan also gave a detailed presentation to the cabinet members.

Ishaq Dar said that the government was concentrating on major policy initiatives that were aimed at consolidating economic stability gains achieved so far and spurring inclusive and sustainable growth, creation of job opportunities and reduction in poverty.

Briefing the cabinet on economic situation of the country when PML-N government took the charge, the finance minister the economy was weak and fragile and the growth rate averaged around 3 percent and inflation around 12 percent during 2008-13, adding the circular debt of Rs503 billion was crippling the power sector and economy. The fiscal deficit was hovering at around 8.8 percent and there were predictions of default. However, due to the economic policies of the government, the economy was now performing well. The fiscal deficit had been on target, closing at 4.3 percent in the current fiscal year ending June 30, 2016.

Dar said that the deficit in the current account had been reduced from $1.9 billion in July-March 2014-15 to $1.6 billion in the same period of 2015-16. He stated that the FBR’s tax collection had increased during the last nine months by 19 percent with historic high tax collection figures of Rs2,103 billion. He said that there had been a considerable increase in the number of taxpayers in the last three years.

The finance minister added that the GDP growth rate was projected to increase by 5 percent this year against the target of 5.5 percent mainly due to severe setback to the cotton crop.

Source: Custom Today