ISLAMABAD, May 19: Finance Minister Dr Abdul Hafeez Shaikh on Saturday said the Federal Excise Duty (FED) would further be cut down in the upcoming budget to provide relief to the masses.

The minister said that the FED on non-luxury items had already been abolished and within three years time it would be phased out.

Talking to media after attending the Degree Awarding Ceremony 2012 of Iqra University at Jinnah Convention Centre as chief guest, the minister said in the past 10 years Rs160 billion had been spent on the promotion of higher education.

“The federal government has transferred additional Rs800 billion to the provinces during the last four years to enable them provide their population best social services like health and education,” he added.

The minister reiterated that the federal budget 2012-13 would be announced on June 1, 2012 and said that that the slabs for the income tax were being revised which would benefit the middle class.

He informed that federal tax collection witnessed an increase of 25 per cent during the first 10 months (July-April) of this fiscal year and expectations were that the revenue target would be surpassed.

When asked about the tax collection also included Rs19 billion raised from GST on services by the Sindh Revenue Board, the minister said that the tax collection target also includes the GST on services collected either by the federal government or the province.

Earlier addressing the degree awarding ceremony, the federal minister appreciated the contribution of the university in education sector by getting top rank in private sector universities in Sindh.

He also highlighted the importance of universities for providing the qualified manpower required for economic growth.