Islamabad: Federal Finance Minister Muhammad Aurangzeb has said that the budget for the next financial year focuses on five principles including broadening the tax base and digitizing the economy.
Addressing the post-budget conference, the finance minister said the implementation of progressive income tax, the disappearance of non-filter and the protection of low-income groups are other important issues in the budget.
The finance minister said that taxes on GDP cannot be less than ten percent. He insisted on increasing it to thirteen percent in the next three years.
Muhammad Aurangzeb announced that the tax will be applied to retailers and wholesalers from July 1. He said that the Federal Board of Revenue has so far registered thirty thousand sellers and the registration process will continue.
Muhammad Aurangzeb said that the end of digitization at FBR is aimed at reducing human intervention and improving transparency and customer service.
He said that no one opposes a progressive income tax because the rich have to pay more taxes.
The finance minister said that the tax on non-filter trade transactions has increased. He said this is the first step to remove the filter in the country.
Answering a question, the finance minister said that a record allocation has been made for the IT sector to facilitate IT exports and youth in startups.
As for small and medium businesses, he said the bank has returned to finance the SME, IT and agriculture sectors.
Answering another question, Muhammad Aurangzeb said that 81 percent of the Public Sector Development Program expenditure was spent on ongoing projects and the rest would be spent on new projects.
The finance minister said that all stakeholders, including allied parties, are involved in the privatization process. He said that privatization of PIA and outsourcing of Islamabad airport will be completed by August. He said this will be after the outsourcing of Lahore and Karachi airports.
Regarding the relief measures, the Minister of State for Finance Ali Pervaiz Malik said that under Benazir’s Income Support Program, huge funds have been allocated in this area. Likewise, the largest number of subsidies will go to the electricity sector to support electricity consumers, including up to 200 protected consumers.
Further, the Minister of State said that additional funds have been earmarked for the Subsidized Store Corporation to provide essential kitchen items at subsidized prices to deserving people.
The Foreign Minister said that there is no tax on workers whose income is up to Rs.50,000.
Next year’s budget focuses on five principles, Finance Minister
