HYDERABAD, June 22: Sindh Minister for Youth Affairs and member of MQM coordination committee Faisal Sabzwari has called for constitution of Provincial Finance Commission as soon as possible and said that his party want agriculture tax slapped on owners of large landholdings.

Speaking to journalists at the press club here on Wednesday, the minister said that MQM talked about land reforms and advocated direct taxes on only those land holders who had huge landholdings. “Why small growers and landless peasants should be subjected to indirect taxation. It was one of the reasons we had opposed reformed GST,” he said.

He said that all sources of income generation, including agriculture, should be taxed directly. “MQM calls for progressive direct taxes because indirect taxes affect everyone,” he said.

He said that low income group should not be burdened with indirect taxation. When salaried persons with per annum income of less than Rs350,000 had been exempted from tax, non-salaried, self-employed or people with some other sources of income, including agriculture, should also be treated likewise, he said.

“It is not fair that the rich, including legislators and ministers who have luxurious vehicles like BMWs and accommodation in all major cities, are paying only Rs7,500 tax,” he said. Mr Sabzwari called for increasing sources of income generation and curtailing expenditure. “MQM says that the government should support small growers and peasants and give land to those who don't have land through land reforms,” he said, quoting Article 25 of the Constitution.

“The privileged class should be taxed and the income thus generated be spent on the welfare of have-nots,” he said.

He urged journalists to clear confusion over tax on agriculture and said his party “…demands immediate formation of PFC on the pattern of NFC”. All stakeholders should put their heads together to work out a strategy for people, he said.

Mr Sabzwari said there were fears the country was heading towards hyper inflation and it was necessary to address issues of income generation.

On the one hand, he said, “we are talking about 'trade and not aid' while on the other our deficit continues to bulge. Since our currency has been devalued our trade deficit is on the rise,” he said.

“We have direct and indirect taxation system which is complicating the entire tax base,” he said, adding that his party wanted to tax those who had large landholdings and fiefs on the basis of their income and if someone had justifiable reasons not to pay tax should be given relief.

He said that federal youth affairs ministry had a budget of Rs3.75 billion in the outgoing fiscal year but not a single development scheme of the ministry was executed in Sindh.

All development works being undertaken in Sindh were being executed by provincial ministry, he said.