Hafeez says no `unpleasant surprise' in upcoming budget

ISLAMABAD: Federal Minister for Finance, Dr. Abdul Hafeez Shaikh said Friday that the government would not put any additional burden of taxes on taxpayers during the upcoming budget for the fiscal year 2012-13.

"There would be no `unpleasant surprise' that becomes worrisome for people," the Finance Minister said while concluding a day-long seminar on "Broadening of Pakistan Tax base: A harmonized strategy for revenue mobilization."

He said the honest taxpayers would not be burdened further while the low income people would not be taxed.

Besides, he added that the government would make the overall tax system easy for people, as giving relief to the people is its ultimate goal.

Shaikh said that the seminar was held with an aim to share ideas for bringing harmony among provinces and federation and take measures for information sharing.

On the occasion, the Federal Minister lauded the efforts of the Federal Board of Revenue for its historic efforts in the field of revenue collection.

He said that there has been 24 percent increase in revenues collected
during the first 10 months of the current fiscal year as against the same period of last year, which he said is a historic increase.

He said that despite this historic achievement, there still was room for improvement in the areas of direct tax mobilization, sales tax on services, simplifying tax system and in projecting the better image of the FBR.

He said that the government was not doing any political influence on FBR and the organization was fully autonomous to do whatever it deems good for itself adding that no approach by higher authorities have been made to FBR during the past couple of years.

On the issues of provinces, the federal minister said that more resources were transferred to provinces following the 7th NFC award while the 18th amendment gave greater power to them.

"It is government's resolve to strengthen Pakistan by strengthening provinces," he remarked and added that constitution of the country well defines role of `who should do what.'

He said all the governments -the federal, provincial and local governments- should collect the taxes according to their jurisdictions.

On the occasion, the federal minister announced formation of four working groups to help harmonize different issues between federation and provinces and devise a better strategy for the overall improvement of tax generation.

The groups include, Income Tax group to be headed by Dr. Anjum Naseem, Sales Tax on Services group to be headed by Qaisar Bengali, Automation Group to be headed by Bashir Ali Muhammad and Policy group that would be headed by Dr. Ayesha Pasha.

Earlier, speaking on the occasion, Renowned Economist Qaisar Bengali highlighted the importance for imposing Capital Gain Tax on Stock Exchange as permanent measure besides advocating GST on land and imports.

He stressed the need for stopping de-industrialization that has been taking place in the country besides introducing wealth tax, which he argued would not be double taxation.

In his brief remarks, another renowned economist, Dr. Hafeez Pasha said that the federation should not interfere in the matters of provinces in the process of harmonization.

Harmonization does not mean cutting powers of provinces" he said, however remarked that there is need of exchanging to harmonize overall tax system.

Among others, Dr. Ayesha Pasha and Dr. Anjum naseem also spoke on the occasion and shared their ideas on double taxation and agriculture tax. (APP)