One can aptly smell politicking on the part of the present democratically-elected government which is all set to present a tax-free federal budget for FY13 on the eve of general elections expected to be held in March next year.
The federal government on Tuesday unveiled its four-point budgetary “priorities” for next fiscal year which, the finance minister said, include economic stability, unemployment and inflation, welfare of “forgotten” segments and the improvement of taxation system. Also, Federal Finance Minister Dr Abdul Hafeez Sheikh said the government in an indiscriminate action was able to collect around Rs 4 billion embezzled by “some of the biggest” names of Pakistan on account of tax adjustments with the Federal Board of Revenue (FBR).
Talking to reporters at the 28th Corporate Excellence Awards ceremony here, the finance minister said the forthcoming Budget 2012-13 would neither bring any new tax nor would the existing tax rates be increased. However, the finance minister said, the rich but untaxed would be brought into the tax net to make the resource-constrained country financially self-sufficient.
Outlining the four priorities his government had “principally” set for the new fiscal budget, Dr Hafeez said the international and national negatives, like global contraction in economic growth, backbreaking floods etc., warranted Islamabad to focus on budgetary measures that could lead the country to economic stability. “Of course, (economic) austerity is essential,” for economic stability, he noted.
The finance minister said ensuring that its tax collection policies be improved and implemented in letter and spirit, his government would tax the country’s rich for achieving economic self-sufficiency.
“The existing taxpayers would not be burdened any further nor the existing tax rates would be increased,” said he adding “So, naturally, there would be no new taxes or increase in the existing ones.”
Also, Dr Hafeez said like this year’s allocation of Rs 50 billion under Benazir Income Support Program (BISP) the country’s “forgotten” segments would not be forgotten in the new budget. It would be ensured that the “weak” and the poor are provided with insurance, small loans and other basic facilities. Unemployment and the present double-digit inflation were cited by the finance minister as a fourth priority of his government.
Other areas the budget would focus are: law and order, health, education, availability of drinking water and infrastructure development. Earlier, the finance minister told the best performing corporate giants at the awards ceremony that the government was determined to take indiscriminate action against those involved in financial irregularities of any kind.
Recalling a list comprising the names “who is who of Pakistan” show to him by the ex-FBR Chief Salman Siddiqui, he said he had ordered the lodging of an FIR against the bigwigs without any hesitation. “Rs 4 billion were collected from that one act alone,” the minister said.
