Federal Minister for Finance, Dr. Abdul Hafeez Shaikh on Friday urged the parliamentarians and all other well -off people to lead by example and pay taxes, besides encouraging others to do the same. “If we have to take the nation towards self-reliance then it is our national duty to pay taxes,” the federal minister said while winding up the budget debate in the lower house of the parliament here on Friday.He said that the biggest responsibility lies with the members of this house to pay taxes and persuade others to do the same.The federal minister said that all those who are making big incomes should pay taxes to lead the country towards self-reliance, progress and prosperity.
“This house, high functionaries, top businessmen, media and whosoever make big incomes, should think this a national duty and lead by example,” he said.Federal Minister for Finance, Dr. Abdul Hafeez Shaikh while winding up the budget debate at the National Assembly also urged upon the politicians to get together to help overcome the challenges the country has been facing.
He pleaded that besides running country’s politics there is need that political leaders get united for overcoming the challenges, saying that if it was not possible for them then they at least should avoid squabbling to get the country out of the crisis.
The finance minister said that that the main focus of the federal budget 2011-12 was to control inflation and provide relief to the masses, saying that the government has taken so many measures to achieve this goal.
He said that for providing relief to the common people, no new taxes have been implemented in the budget rather so many existing taxes have been abolished.
He said that the government has implement only two types of taxes including Income Tax and Sales Tax.
The Regulatory Duty on 392 out of 397 items have been abolished, special excise duty has been completely withdrawn, the Federal Excise Duty has been removed on 17 items out of 57 items while customs duty on all pharmaceuticals has been eliminated to help bring down inflation and provide relief to common people.
He said that the government had frozen current expenditures last year and has further reduced these this year to decrease borrowings and overcome inflation.
He dispelled the impression that the government has withdrawn subsidies,saying that it was improving the system to provide targeted subsidies for vulnerable and it has allocated Rs35 billion for Benazir Income Support Programme to help the poor and widows.
He pleaded that besides running country’s politics there is need that political leaders get united for overcoming the challenges, saying that if it was not possible for them then they at least should avoid squabbling to get the country out of the crisis.
The finance minister said that that the main focus of the federal budget 2011-12 was to control inflation and provide relief to the masses, saying that the government has taken so many measures to achieve this goal.
He said that for providing relief to the common people, no new taxes have been implemented in the budget rather so many existing taxes have been abolished.
He said that the government has implement only two types of taxes including Income Tax and Sales Tax.
The Regulatory Duty on 392 out of 397 items have been abolished, special excise duty has been completely withdrawn, the Federal Excise Duty has been removed on 17 items out of 57 items while customs duty on all pharmaceuticals has been eliminated to help bring down inflation and provide relief to common people.
He said that the government had frozen current expenditures last year and has further reduced these this year to decrease borrowings and overcome inflation.
He dispelled the impression that the government has withdrawn subsidies,saying that it was improving the system to provide targeted subsidies for vulnerable and it has allocated Rs35 billion for Benazir Income Support Programme to help the poor and widows.
Winding the budget debate, Federal Minister for Finance, Dr. Abdul Hafeez Shaikh said despite financial limitations, the government provided huge subsidy on electricity, Rs.50 billion on oil while subsidies on fertilizers and basic items through Utility Stores Corporation was still continuing.
He said that this all aims at providing relief to the common man and the budget 2011-12 is the reflection of this fact.
Talking about revenue collection, he said only 1.5 million people were paying income taxes and the Federal Board of Revenue has ventured into a challenging job of bringing tax avoiders into the net to broaden the tax base instead of overburdening the existing taxpayers.
The board has identified 700,000 potential tax avoiders and served notices to many of them adding that 1,000 of these have filed their returns.
He said that several sectors of economy have been brought under Sales Tax net while others would also be included to expand it.
He said that the refund system has also been improved as Rs.45 billion have been refunded during the current fiscal year against Rs.15 billion refunds of last year.
He said that 12,000-13,0000 refund cheques were issued from September to May (2009-10) while in the same period of fiscal year 2010-11, about 46,000 cheques were issued and that too without spending a single penny by the taxpayer.
He said that the revised revenue collection target of Rs.1588 billion for the outgoing fiscal year 2010-11 would be achieved.
He said that year 2011-12 would be great for education and health sectors,saying that despite being provincial subject, the federal government provided funds for promoting these sectors. The Higher Education Commission has also been provided funds as usual, he added.
He, however, admitted that there were rooms for improvement saying that there are certain sectors where improvement in governance is needed. He also admitted that the government failed to create reasonable jobs in private sector last year, however attributed it to fall in investments in the country.
The minister said Rs.730 billion have been allocated in Public Sector Development Programme for upcoming year that would help stir economic activities and create jobs.
He said that according to constitution, taxing agriculture sector was provincial subject, however all taxable incomes, no matter where from it has come, should be taxed. He said agriculture tax was already there and appealed the provincial governments to implement it properly.
The minister said that 20 budget related specific proposals forwarded by the upper house of the parliament would be accommodated while the general recommendations would also be considered.Finance Minister, Dr. Abdul Hafeez Shaikh, while winding budget debate said that despite challenges, the economic indicators were moving on positive direction as the exports for the outgoing fiscal year 2010-11 are expected to touch $25 billion mark.
He said that remittances have also witnessed recorded increase and crossed the $11 billion figure while the foreign exchange reserves of the country stand at over $17.5 billion.
He said that in 2008 when this government assumed power, the foreign exchange reserves were on decline, value of Pak rupee had depreciated, the fiscal deficit was at 7.5 percent while the inflation had reached at 25 percent.
The government was able to bring back the economy on the path of sustainable development by taking hard decisions including freezing its own expenditures and reforming tax system.
He said that the 2010 floods affected 20 million people, damaged crops,including 30 rice crops besides devastating roads, dams, industries and refineries besides inundating several medium size towns. The collective damaged caused by floods was estimated at Rs.10 billion.
War on terror also claimed lives of 5,000 security personnel and 30,000 civilians besides damaging basic infrastructure. In addition the prices of oil increased from $75 to $125 per barrel in the international market that also hit the country’s economy.
The federal minister said that due to all these negative trends, the growth rate reduced from 4.5 percent to 2.5 percent, which he termed as good performance in the given circumstances adding that the government was also successful in containing the inflation at 12-13 percent. APP
He said that this all aims at providing relief to the common man and the budget 2011-12 is the reflection of this fact.
Talking about revenue collection, he said only 1.5 million people were paying income taxes and the Federal Board of Revenue has ventured into a challenging job of bringing tax avoiders into the net to broaden the tax base instead of overburdening the existing taxpayers.
The board has identified 700,000 potential tax avoiders and served notices to many of them adding that 1,000 of these have filed their returns.
He said that several sectors of economy have been brought under Sales Tax net while others would also be included to expand it.
He said that the refund system has also been improved as Rs.45 billion have been refunded during the current fiscal year against Rs.15 billion refunds of last year.
He said that 12,000-13,0000 refund cheques were issued from September to May (2009-10) while in the same period of fiscal year 2010-11, about 46,000 cheques were issued and that too without spending a single penny by the taxpayer.
He said that the revised revenue collection target of Rs.1588 billion for the outgoing fiscal year 2010-11 would be achieved.
He said that year 2011-12 would be great for education and health sectors,saying that despite being provincial subject, the federal government provided funds for promoting these sectors. The Higher Education Commission has also been provided funds as usual, he added.
He, however, admitted that there were rooms for improvement saying that there are certain sectors where improvement in governance is needed. He also admitted that the government failed to create reasonable jobs in private sector last year, however attributed it to fall in investments in the country.
The minister said Rs.730 billion have been allocated in Public Sector Development Programme for upcoming year that would help stir economic activities and create jobs.
He said that according to constitution, taxing agriculture sector was provincial subject, however all taxable incomes, no matter where from it has come, should be taxed. He said agriculture tax was already there and appealed the provincial governments to implement it properly.
The minister said that 20 budget related specific proposals forwarded by the upper house of the parliament would be accommodated while the general recommendations would also be considered.Finance Minister, Dr. Abdul Hafeez Shaikh, while winding budget debate said that despite challenges, the economic indicators were moving on positive direction as the exports for the outgoing fiscal year 2010-11 are expected to touch $25 billion mark.
He said that remittances have also witnessed recorded increase and crossed the $11 billion figure while the foreign exchange reserves of the country stand at over $17.5 billion.
He said that in 2008 when this government assumed power, the foreign exchange reserves were on decline, value of Pak rupee had depreciated, the fiscal deficit was at 7.5 percent while the inflation had reached at 25 percent.
The government was able to bring back the economy on the path of sustainable development by taking hard decisions including freezing its own expenditures and reforming tax system.
He said that the 2010 floods affected 20 million people, damaged crops,including 30 rice crops besides devastating roads, dams, industries and refineries besides inundating several medium size towns. The collective damaged caused by floods was estimated at Rs.10 billion.
War on terror also claimed lives of 5,000 security personnel and 30,000 civilians besides damaging basic infrastructure. In addition the prices of oil increased from $75 to $125 per barrel in the international market that also hit the country’s economy.
The federal minister said that due to all these negative trends, the growth rate reduced from 4.5 percent to 2.5 percent, which he termed as good performance in the given circumstances adding that the government was also successful in containing the inflation at 12-13 percent. APP
