Federal Minister for Finance, Dr. Abdul Hafeez Sheikh has stressed the need for reducing non-developmental expenditures to improve the socio-economic condition of the masses.
He said the government is making all efforts to reduce non-developmental expenditure and it was taking solid measures for the purpose.Dr. Hafeez Sheikh while talking to the PTV said that the government is exploring new avenues and also working hard so that Pakistan could achieve self-reliance.He said the Government has increased allocations to Rs. 50 billion for Benazir Income Support Program (BISP) to help poor people.He said during the current financial year the BISP was allocated Rs. 35 billion and this had benefitted about four million families.He was of the view that the government will have to reduce its dependence on borrowing.Dr. Hafeez Sheikh said subsidies amounting to billions were being provided for petroleum products and electricity.
He said, however, the government is now trying to evolve a system so that the poorer could get better and more benefits from the subsidies.
He said that federal excise duty on 15 out of 52 items has been abolished while duty on other items was also reduced from 12 to 6 per cent. He said the regulatory duty on 392 items has been removed.
He said duty on cement has been reduced from Rs. 700 per ton to Rs. 500 per ton.The Minister further said that special excise duty has been completely abolished.He said the Federal Board of Revenue (FBR) was striving to improve the system. This would help achieve the objective as laid down by it in the revenue collection.
Replying to a question, the Finance Minister said the refund system in FBR was streamlined during the current year.
He said around 46,000 cheque for Rs. 40 billion were issued whereas last year only 13,000 cheque worth Rs. 16 billion were issued as refund money.
He said: “We want to facilitate the tax-payers and for this purpose, FBR has introduced reforms in the refund system.”
He said that 2.3 million people had been identified and out of these around 700,000 wealthy people would be brought into the tax net.
He said in the initial stage, “we will try to put about half a number of these people in the tax net”.
To a question, he said the pressure on the low income group has been reduced by various measures taken by the government.
He said the minimum annual taxable income has been raised from Rs.300,000 to Rs. 350,000.
The finance minister in reply to a question said that the International Monetary Fund (IMF) has been providing help to Pakistan.
He said the Government sometimes has to rely on loans and like other countries, “we too have a relationship with IMF “.
Dr. Abdul Hafeez Shaikh dispelled the impression that Pakistan takes dictation from IMF.He said, however, IMF always prefers to provide loans to the governments which strive to improve socio-economic conditions in their countries.
He said that last year, floods unfortunately inflicted huge losses on Pakistan’s economy.
He said rise of oil prices in the international market and law and order situation were among other factors in hurting the economy of Pakistan. APP
