Minister for Finance Ishaq Dar on Saturday rejected opposition’s criticism over the proposed one percent increase in the General Sales Tax (GST), stating that the proposed GST would not be withdrawn as the country’s economic conditions did not approve such a drastic measure at this point in time.
Winding up the budget debate in the National Assembly (NA), Dar defended the government’s decision to seek further loan from the International Monetary Fund (IMF), stating the time had come for the country to return IMF loan obtained by the previous government. He said the government would repay an amount of $ 3 billion to the IMF during the next fiscal year. He assured the House that national interest would be held supreme in talks with the IMF.
The finance minister also announced incorporating 21 recommendations out of the 112 forwarded by Senate to NA, and promised reduction in GST as soon as the revenue position improved.
Covering all major points raised during the budget debate by opposition lawmakers, Dar said circular debt of Rs 326 billion would be cleared within two months. The development budget has been increased from Rs360 billion to Rs 540 billion in FY 2013-14, which is a 50 percent increase, he added.
Discussing the proposed increase in General Sales Tax (GST) from 16 to 17 percent, Dar said during the current fiscal year, Federal Board of Revenue (FBR) faced a shortfall of Rs 374 billion and expected to collect Rs 2,007 billion against a target of Rs 2,381 billion. Next year, he added, the government would push to collect Rs 2,475 billion in tax revenue.
He said reforms were suggested in income tax law and one of the changes was to end various income blocks and use a unified definition. Rental block is one block whose rate is different from various other incomes and present presumptive tax rate of rental income is 10 percent, which is a full and final settlement of tax liability.
“We have suggested in the budget to increase this tax to 17.5 percent by increasing it through different slabs. But no change was suggested in the presumptive character of this tax,” he added.
In light of recommendations of the members, Dar said, it was decided to keep withholding tax at two rates of 10 and 15 percent on rental income which will be adjustable after final assessment.
The minister further said access to banking information was part of tax reforms which was in line with changes taking place in the world at large. However, it was decided that field officers would not have access to bank accounts and this access was restricted only to the chairman and members of FBR.
It was also decided that no one in FBR would be allowed to make information of bank accounts public and the legal sentence for this violation was increased from six months to one year with a raise in fine from Rs 50,000 to Rs 0.5 million, Dar added.
Talking on measures taken for security of strategic assets of the country, the finance minister said Pakistan’s security of strategic assets was prepared with a great sense of responsibility and its defence measures matched international standards.
In 1999, the program was divided in different parts but now it has a unified national command authority headed by the prime minister and the Special Projects Division (SPD) acts as liaison among various programs, he stated.
He said the program was protected by strategic forces command that worked under a strict regulatory regime relating to nuclear safety, including protection of material and facilities, fissile material control, accounting and steps against illegal trafficking and border controls.
The finance minister said the program had an export control regime of international standards set up by Nuclear Suppliers Group, Missile Technology Control Regime and Australia Group. He said the country’s nuclear program was protected by a highly trained security force of 25,000 personnel equipped with modern weapons along with Special Response Force, Special Escort Force, Marine Force, Counter Intelligence Teams and Personnel Reliability Programs.
Dar said the current weak economic situation, energy shortage and terrorism were the main challenges for the government, calling upon parliamentarians to guide the government effectively in countering them.
He also talked on government’s measures to end discretionary spending of ministers, ban on buying of vehicles for important personalities and elimination of wasteful expenditures. He said all recommendations had been submitted in the National Assembly Secretariat.
Dar also pinned hopes for achieving the goal of self-reliance in cooperation with all parties in the parliament and reiterated the resolve of the government to continue serving the masses.
Earlier, during the debate, opposition parties criticised the budget, particularly for government’s income tax proposals besides increase in GST rate, waiver of customs duty on hybrid cars, taxing educational institutions and removal of Benazir Bhutto’s name from income support program.
THE PREMISE OF BUDGET MAKING WAS WRONG IN FIRST PLACE.THEN THE PREMISES ON WHICH IT WAS BUILT PUNISH POOR WITH MORE TAXES,GST.RO ACCOMMODATE SUPER DUPER MEGA DREAM PROJECTS OF PRIME MINISTER WHICH COULD HAD BEEN DONE IN DESIRABLE PARTS -STAGES.WHY INCREASE BENAZIR INCOME SUPPORT FUND OF ZARDARI WHO RUINED ECONOMY AND PAKISTAN EVEN WITHIOUT CHANGING ITS NAME.TO PLEASE ZARDARI TO BECOME FUTURE PRIME MINISTER.IT IS SELFISH,ARROGANT,MYOPIC BUDGET.IT MUST BE REVISED
APPEAL TO RESPECTED PRIME MINISTER NAWAZ SHARIF,FINANCE MINISTER
I would urge Ishaq Dar to please give income tax relief to such sons-daughters who support ther sick,old,jobless old parents with no pension and living away from them etc .They still support their own families,school going children.their parents can vouch on affidavit the amount given by them to support their living which should be taken as tax money from their total tax receivables.Please do not punish such obedient children to make them feel [if[their parents are becoming burden-liabilty on them.This tax money could be miniscule but will rewaed ML-N government tremendously.
Arey Hukoomat
Arey Hukoomat
Tumhara Kya
Awam Jane
Awam Ka Khuda Jane
Awam Jane
Awam Ka Khuda Jane
They are in a hurry to collect and disappear as before.They know it and those who voted for them know it. PML N is like the street hawker who disappears when you buy something from him because its rotten and returns when you have probably forgotten or shifted elsewhere. They don't last very long certainly not the term.
Dar the Dracula of poor. GST blood sucker .It is not five percent or 5 percent or fifty billion rupees which could had been managed by chipping few billions from here or there to save plight of poor as mentioned by others.Infact the blood sucking Dracula aims to extort 159 billion rupees in total cumulative effect.,The Dracula is not an economist but an accountant employed to please his master-sambundi to cater to his dream projects which could had been postponed for a year,eg,Kunjrab railways to Kashgar,Bullet train,etcetc.the stuborness is ;tukbar'which is equal to 'shirk.if it hurts poor and Ishaq dar and Nadwaz Sharif is once again indulging to bring his sharp downslide.
better description of dar—–darcula-the blood sucker-enemy of poor
Dear Dar, Do not insist on one percent increase in GST. If government can do nothing with 16%, the it will not be able to do anything with 17%. Instead PMLN government should have reduced GST to 10% to give relief to already oppressed masses.
Dar is a puppet with IMF's bazoo up his you know what. Remember a few facts:
1. The "Dar" budget was in fact put together by the "interim" government as stated in NA the other day (Of course interim govt had no authority to do so but then you are not a sovereign nation)
2. The interim government too was taking dictation from IMF and "had accepted ALL their conditions" one of which is scr*w the poor more through increase in GST
3. Khawaja Asif went to US four days before the election to "guarantee"/reassure/confirm US and IMF that PML-N would be a humble servant and will meet every demand
So going to IMF and this "budget" were done deals way before the elections. Only thing now is those "conspiracy theories" are being proved right 🙂
Related:
Comment on this from 6 weeks ago
Comment on this "austerity" from 7 weeks ago
7 weeks ago IMF bailout was a done deal
Of course Dar has finally stated what we knew ALL ALONG:
Dar: 'Government will have to go to IMF'
So of course "government" won't budge on GST because in reality we have no government of our own but slaves installed as our figureheads….
Funny to me is SC doing politics on this for they know too well how it will end up (as always); SC just trying to win some cheap brownie points, the *^%$#( that they are….
And hilarious to see some calling it
Triumph of law over economics
(There is someone living in La-La-Land 🙂
THEY ARE RESPONSIBLE FOR THE SUFFERING OF MASSES; ITS NOW DUTY OF ORDINARY SOLDIERS TO TAKE THEM TO TASK (AS GENERALS WONT DO THIS)
" (AS GENERALS WONT DO THIS)"
Let's spell it out: Generals are willing partners in these crimes and making millions of $$$$$$….so of course they won't bite the hand that feeds them…
For last five years PMLN talked a lot about acceptance of judicial orders in true essence. Now it's time to prove it. This is first decision by court and PMLN is not ready to accept.
Suprem Court's Order???????????????????????????????????????????
SHAHID HUSSEIN QABOOLPURIA,
LAHORE, PAKISTAN
NAWAZ + ZARDAR ASSETS= 5 BILLION DOLLARS
WHY TO GO TO IMF????????????
They will not buy a panadol from their own pocket. Our money is there.
Putting more and more burden on the masses is not a good idea by Dar Why not tax the higher income earners and very well offs with huge mansions and millions in their bank accounts Pushing lower paid to the war will bring some back lash and government will end up with public disorder then Dar will retreat Tax the higher income bracket people to get revenue not the poor workers.
Kia hoa tera waada?
dar the darcula-blood sucker of 16.5 crore poor and safaidposhs–enemy of their hungry stomachw-nawaz sharids image is losry as friend of poor.it was all dirty politics for richest
IT IS FALLACIOUS THAT CIRCULAR DEBT is no one electricity-national [roblem.it is the heaviest cost of electricity.12-14 hours load shedding still leaves 16 crore poor with half a loaf to eat. after paying its bills.if bijli bijli comes for 20-24 hours,they will be left with none. than they will burn themselves,every house and burn every thing.'sisti bijli is solution and exterminating corruption and corrupts.one fakir jamal on tv has beeen warning you for years and giving solution.prime minister sahib find him to get sincerest advice than from vested ones.save country
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