Revenue from new taxes to help reduce circular debt: Dar

ISLAMABAD: Finance Minister Senator Ishaq Dar said here on Thursday said that implementation of new taxes would generate Rs202bn, which would help to reduce the circular debt, adding that the government would not make any decisions under pressure.

Speaking at a post-budget press conference on Thursday, he added that the nation must move forward by keeping in mind the current situation.

By 2016, Dar said that the government aimed to reduce the fiscal deficit by four per cent, bring down inflation to single-digit level, as well as increase the GDP up to seven per cent and foreign remittances to $20bn.

The finance minister said that the government planned to eliminate the circular debt within 60 days, adding that it would do everything to bring the economy back on track and not allow the debts pile up.

Moreover, Dar said that the secret funds of the ministries and other government departments had been ended. Current non-salaried expenditures of the government would be slashed by 30 per cent.

Furthermore, the Prime Minister House budget, excluding salaries and allowances, was reduced by 44 per cent, while the PM Office’s budget was slashed to Rs396mln from last fiscal year’s Rs725mln, a reduction of 45 per cent.

The corporate tax was also reduced to 30 per cent from 35 per cent.

According to Dar, the government would save Rs40bn by employing these austerity measures. He added that the current economic problems were caused by the fact that the expenditures were higher than the income.

The finance minister said that the increase in the general sales tax was slight, while no new taxes had been imposed on the essential food items.

In a response to a question, Dar said that the funds allotted to a certain sector would only be utilised for that particular sector.

Finance Minister Dar further said that the government would attempt to move in the right direction, but the nation must bear the current problems for the sake of their future generations.

Federal Minister for Planning and Development Ahsan Iqbal, Secretary Finance Waqar Masood and other senior officials were also present at the press conference.

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Comments (13) Closed

Tallal Nawaz

Jun 13, 2013 07:23pm

Finally some good governance in power after elections. Even though the targets set seem very far fetched I hope the succeed.

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I. Ahmed

Jun 13, 2013 07:50pm

The circular debt - a mismanagement on the part of public-private sector - started during Musharraf time and worsened during the time when PML-N was supporting the PPP government (first three and a half years). Now this joke that increased taxes (which eventually will be paid by the people of Pakistan) will help ease circular debt (which was created by policies and continued policies of inefficient bureaucrats, corrupt politicians and greedy businessman). Mr. Dar, you people continue to mis-govern and people of Pakistan end up paying for your mistake, true, democracy is the best revenge.

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Tahir Ali

Jun 13, 2013 08:08pm

- the nation must bear the current problems for the sake of their future generations Mr. Dar are you not among this Nation? are the other Parlimentarians not among the Nation. If you along with other Law Makers belong to the same Nation than why Just Nation should bear the current problems for the sake of thier future generations or might I say for the future of Your Generations??? Why You and including other Ministers and Parlimentarians even Including PM and President do not cut their own per month Salary upto 50% to reduce deficit as every one of you is being regarded with a 500,000/- or even more in terms of Salary excluding other benefits like Medical Facility Free/Govt Accomodation, Fuel, Cars with protocols, Free Telephone/Electricity/Gass Services, Plus Luxury lifestyle in which you would be travelling domestically or internationaly without spending any single penny from your own Pocket??? Mind it that all expenses on every single person like you (in NA and or Senate) is being paid by us.... the nation. So who the hell was he announced a rebate on Cars and an increase in taxes on general commodities/food items??? We will come out and protest against this curel budget in which there is no increase in Salaries how can you justify your Taxes? Why you do not bring those Tax Looters who are not paying their liabilities including you and others. Shame Shame Shame.

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Syed Ahmed

Jun 13, 2013 10:05pm

Indirect taxes on common man are deceitful. Agricultural income should have been taxed instead levying new taxes. Also a goal must have been set to recover laundered money lying in Swiss and other foreign banks. The loan, tax and utility bills defaulters should have been made accountable. I am afraid that wont be done in the coming years for the reason best known to Ishaq Dar, Nawaz Sharif and Shebaz Sharif. Please stop screwing the poor people any further.

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nabil

Jun 13, 2013 10:57pm

Why don't they impose tax on rich people?

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Sidster

Jun 14, 2013 12:21am

@Tallal Nawaz: What good Governance? The Finance Minister just increase tax on middle and lower income population and decrease tax on Industrialist who have too many tax loopholes to evade taxes. Increase GST will pay for Circular Dept and will put us inline to get more loans from IMF, which will increase our loan repayment to external banks for future Generation. By your standard of judgement, We should all thanks Ishaq Dar for quick sand solution for Future Pakistanis.

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ailly

Jun 14, 2013 01:23am

@Tallal Nawaz: dont worry brother sooner you should hide second part of your name from public, when you will see what other Nawaz will do this nation.

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Asif Ali

Jun 14, 2013 03:23am

Can our system do not ask the previous Government to pay for losses they caused during their ruling period? I think recent Government should recover all losses by selling properties of previous Govt. beneficiaries otherwise this will be happening again and again.

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Mateen

Jun 14, 2013 03:20am

If they can enforce 30% tax on 30% of the able people in this nation then we could afford everything, including a national spaceprogramme + a car made out of gold for every parliament member.

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A Choudhry

Jun 14, 2013 03:20am

Okay while I am all for improving the business sector my question pertains to the taxes levied on cars...why is it the high end cars that are typically used by the "rulers" have no taxes attached to them? Can someone please explain that to me? Or is it just that our law makers want everyone to pay more taxes and they themselves find themselves above that...maybe they only make money...not pay what they rightfully should!

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A Choudhry

Jun 14, 2013 03:24am

@Syed Ahmed: I love the way people keep harping on taxing agricultural income! Have you ever had the opportunity to look at the books of an agriculturist? Please do your homework before you make blanket statements...there are so many uninformed people who think that taxing agricultural income is the solution.....its our industrialists that need to pay more taxes sir! Get your facts straight!

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muhammad

Jun 14, 2013 03:57am

0.8% taxpayers and a little under 99.2% (including most of the leaders) cheaters???? Such state of affairs is a guarantee of its doom! Does any of the cheaters know who he/she has to answer ultimately???? If he/she claims to be a Muslim and continues with such behaviour, then surely Allah will destroy them and their nation too! May He guide us on the path of righteousness.

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Syed Ahmed

Jun 14, 2013 04:51am

I also learn that the billion Dollar real estate and stock exchange of the country has also not been taxed, which would have generated enough money for the power sector, health care and education and fixing up law and order. Countries dwindling economy is mostly responsible for worsening law and order.

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