KARACHI: Federal Minister for Finance Dr. Abdul Hafeez Sheikh has said that the sectors exempted from taxation would be brought into tax net and government expenditure definitely be reduced during next budget, which is going to be announced on June 3.
He was addressing a press conference at State Bank House here on Saturday. He said that more funds would be allocated for Pakistan Bait-ul-Mal (PBM). He said that reforms are being made in the sales tax system. Pakistan wants to avoid foreign debts in future.
He said that Revenue Advisory Council and Economic Advisory Council have been formed for the preparation of budget. Both the bodies suggest reforms in taxation system and other important issues. He said that State Bank is independent to plan the monitory policy according to the ground realities. Government is not in the favour of increasing interest rate however it depends upon the State Bank that what step it want to take to streamline the economy.
Finance Minister said that all the stake holders are consulted on the next budget because it is being prepared for the common man. “The growth rate was fixed 4.5 percent for the current financial year but it was not achieved due to floods whereas soaring price of petroleum products in international market also put adverse affect on it. During last 10 months, exports of the country have increased by 80 percent. It is hoped that the exports will exceed from 24 billion dollars during next fiscal year”, Minister added.
Sheikh informed the journalists that extra amount of Rs 303 billion would be provided to the provinces under NFC award to run healthcare, education and municipal affairs in befitting manner. He said that federal government has already reduced unnecessary expenditures and it would be an effort that the investor might get more benefits instead of privileged class.
“We are trying to pave the way for private sector so that it could come forward to meet the export target. He said that the burden will not be put on old tax payers and new people would be brought under tax net.