Rs300 bn tax exemptions to rich being abolished: Dar

[Shabaz Sharif]

ISLAMABAD: Finance Minister Senator Ishaq Dar on Saturday announced that the tax exemptions amounting to Rs300 billion to the rich were being abolished with immediate effect.

He said this while presiding over a meeting of the Tax Advisory Council comprising all the stakeholders for consultation on budget-related proposals to be incorporated in the next financial year.

The meeting was attended by chartered accountants, academics, senior tax consultants, retired senior officers, industrialists, presidents of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the four provincial chambers of commerce and professional associations, including ICAP, ICMA, President Tax Bar, the Security and Exchange Commission of Pakistan (SECP), Pakistan, the Banking Association, the Karachi Stock Exchange (KSE), Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE).

The finance minister said that economic recovery was the top priority of the PML-N government and with the introduction of reforms during the last ten months the economy has been put on the right direction.

Now with hard work, commitment and dedication, all the economic indicators were on an upward trajectory, he added.

He said that transparency, merit, openness and good governance remained the hallmark of the PML-N government and resolved to make every effort to facilitate the traders by solving their reasonable demands while keeping in mind the national interest.

He said, “We believe in consulting all the stakeholders, including the chambers of commerce, trade bodies, representatives of industries, exporters and importers in the process of budget-making.”

He informed the traders that he suspended the implementation of SRO 351 of 2014 that was issued by the Federal Board of Revenue (FBR) without his approval.

He said that all the discriminatory SROs issued in the last three years would be abolished and all the stakeholders were working together in this regard.

He emphasised on the formulation of realistic proposals aimed at ensuring growth in the economy and revenue generation enabling the government to make appropriate allocations in the development sector and social safety net.

The business representatives discussed in detail their issues and recommendations.

They appreciated the work being done by the Finance Ministry and FBR for the SROs’ rationalisation. The trade representatives appreciated the finance minister’s sincerity, hard work and dedication for the uplift of the country. The traders also appreciated the minister’s personal interest in sales tax refunds up to one million rupees.

According to a Finance Ministry press statement, there was a general sense of satisfaction over the economic policies of the government and the expectations that the strengthening of the rupee would bring about a positive impact on the country.

The SECP chairman, FBR chairman, representatives of chartered accountant firms and senior officials of the Ministry of Finance and FBR also attended the meeting.

Rs300 bn tax exemptions to rich being abolished: Dar - thenews.com.pk

This alone will improve tax to gdp ratio by at least 1%.

 

[Hyde]

Yeah heard the news but lets see if he can maintain his stance or reverse the decision at a later stage

Nevertheless a better news although the implications of such a decision can be positive or negative.

 

[Leader]

Dar gave the tax exemptions, now taking back, looks like rate acha set nahi ho raha...

 

[Shabaz Sharif]

Dar gave the tax exemptions, now taking back, looks like rate acha set nahi ho raha...

Abolishing tax exemptions are not enough, this will increase tax-to-gdp ratio by 1%. Anyway lets see if this year FBR archive 2810 billion tax target. Looks like even next year tax-to-gdp ratio will be around 10% even if target is archived.

 

[Archie]

Abolishing tax exemptions are not enough, this will increase tax-to-gdp ratio by 1%. Anyway lets see if this year FBR archive 2810 billion tax target. Looks like even next year tax-to-gdp ratio will be around 10% even if target is archived.

it still will be low
in India its close to 20 %

Mr DAR should try to get more people to pay income tax

i read somewhere dat only 1% pay income tax in Pakistan

 

[Shabaz Sharif]

it still will be low
in India its close to 20 %

Mr DAR should try to get more people to pay income tax

i read somewhere dat only 1% pay income tax in Pakistan

Only 1.6%. While actual population which earn enough to pay taxes is around 7%.