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Luxuries taxed in Punjab budget only: Mujtaba
LAHORE: Punjab Finance Minister Mujtaba Shuja-ur-Rehman said here on Friday that tax had been levied only on affluent segments while there was also a proposal to impose tax on the agriculture sector in the budget 2013-14.
He was talking to a delegation of the International Monetary Fund (IMF) headed by senior representatives.
The finance minister said that agriculture tax would be implemented in phases, adding that property tax, motor vehicle tax and tax on services were the major sources of provincial income which would increase due to reforms in the tax collection system.
The district governments would be given Rs 239 billion while solar energy operated tube-wells worth Rs 7.5 billion would be provided to cultivators-growers, he said, adding that the provincial government was paying special attention to the energy sector.
A sum of more than Rs 20 billion would be utilized on development projects Besides hydel and thermal, he said, the utilization of alternative sources including coal, windmill and biogas was also being considered for power generation.
The finance minister said that education, health, energy and economic development were priorities of the provincial government and asked international monetary institutions and donor agencies to extend cooperation in the regard.
The government is determined to steering the country out of the energy crisis and a comprehensive strategy is being evolved for the purpose, he said.
He told the delegation that expenditures of the Punjab Chief Minister's office and provincial departments had been curtailed by 30 percent and 15 percent respectively, citing that the government was committed to curtailing non-development expenditures and adopting simplicity and austerity in the governance.
A ban has also been imposed on the purchase of new government vehicles besides abolishing grants for furniture of provincial ministers' residences and their discretionary grants. He said that good governance and elimination of corruption would be ensured at all costs.
Mian Mujtaba said education sector development was Punjab government's top priority and a sum of Rs 244 billion (26 percent of the total buget 2013-14) had been allocated for the purpose.
Another priority area is the health sector and Rs 102 billion (10.9 percent of the budget) would be utilized on the provision of health facilities.
He said that there was a scope of further expanding cooperation in health and education sectors in Punjab by international monetary institutions.
The IMF delegation assured the provincial minister that cooperation and investment in health, education and energy sectors would be considered as international monetary institutions were interested in the sectors. The delegation appreciated the efforts of the Punjab government for reforms in tax collection.
