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Tuesday, July 27, 2021

No imposition of additional flood tax: Hafeez

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ISLAMABAD: The Finance Minister Dr Abdul Hafeez Shaikh said on Tuesday that the government was not considering levying 10 percent additional flood tax on income. He expressed these views while talking to media persons after a ceremony organized to pay refund cheques of tax payers here at Planning Commission. The Minister said the government would go for other options to generate funds for flood affectees.

“Even if the flood tax is imposed, it would be nominal and would not put additional burden on the tax payers”, he added.

He said the government was determined to bring reforms in the current tax system. The Minister said that flood surcharge would not be imposed on income, sales tax, import and export but it would be charged on property, land and higher income group who can bear the burden. Reformed General Sales Tax (RGST) would be imposed after the complete consensus of the provinces through proper legislation and approval of the parliament which aims to bring more sectors into tax net by abolishing the tax exemptions, he added.

Dr. Shaikh said that the federal and provincial representatives were progressing towards final decisions on RGST and all the matters would be finalized during next few days. He said that the government had decided to keep the RGST ratio at 15 percent. However, due to economic situation after the flash floods in the country some changing is expected.

Reforms in tax system, he said, were aimed at to increase the tax to GDP ratio as promised with international institutions as well as to bring transparency in the existing system. No additional burden would be put on the people who are already paying the tax adding that honest tax payers would be encouraged, he added.-SANA

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