ISLAMABAD, May 12: The government was planning to levy new taxes, Finance Minister Ishaq Dar said shortly before his party decided to quit the federal cabinet on Monday.

“The government is considering to impose capital value tax on real estate and capital gains tax on stocks trade in the new budget to provide targeted subsidy to the poorest of the poor,” he said.

Addressing a pre-budget seminar, jointly organised by the Federal Bureau of Revenue (FBR) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mr Dar warned currency dealers of serious consequences if they continued to artificially bring down the value of rupee against the US dollar.

“It is hurting national interests. Stern action will be taken against currency speculators,” the finance minister said. “Don’t force the government to use Danda (stick) against you.”

He said the government did not believe in intervening in the market and the State Bank was providing necessary support and guidance to market players.

However, he said, some ‘administrative measures’ would have to be taken to bring the dollar down to the 60-rupee level, similar to steps taken in 1999 when the PML-N was in power.

“Pakistan’s external balance of payments is under pressure and as such, our foreign exchange reserves have declined. Unscrupulous elements have taken advantage of (certain) developments and have played havoc with the exchange rate. Let me warn the speculators who are manipulating the exchange rate not to burn their fingers. They must stop these anti-state activities. Otherwise, the government will take stern actions against them for destabilising the money market.”

These speculators, he said, should not forget 1998-99 when the exchange rate was abrubtly brought down from Rs67 to Rs53.

The SBP, he added, was keeping a close watch on market players and it was in the speculators’ own interest to work in national interest.