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Broadening tax net, lowering expenditures will to boost economy: Dr Hafeez Sheikh

Broadening tax net, lowering expenditures will to boost economy: Dr Hafeez Sheikh

KARACHI:  Advisor to Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Sheikh has said that due to dreadful planning during last ten years the economy has suffered terrible losses.

According to the details, while addressing a gathering of the Council of Foreign Relations, the Advisor to Prime Minister on Finance Dr Abdul Hafeez Sheikh said that due to looming economy crisis strict decisions has to be taken to restrict further loss to the country.

Dr Abdul Hafeez Sheikh stated that unfortunate the Textile Industries are earning twelve hundred billions of rupees but are used to pay only five billions of rupees which is unfair. He said if a person is earning 1.2 million rupees annually then he has to pay twenty five hundred rupees tax for the well-being of his country. It is most important to take strict decisions to restrict current deficit and shrinking economy.

Advisor to Prime Minister on Finance said to overcome the crisis friendly countries have been asked for the help, under the supervision of IMF other organizations also provide loans but broadening the tax net and lowering the expenditures will also help to boost economy. He said that we are trying to broader tax net for which category of non-filers has been omitted. To overcome the current deficit FBR has been target of 5500 billion rupees tax collection which is hard but not impossible. Now everyone has to give tax no matter if anyone gets angry due to it. In the end he requested the people of the country to take advantage of amnesty scheme otherwise the law will come into force.

While addressing the participants of the event, Chairman Federal Board of Revenue (FBR) Shabbar Zaidi said there is a mafia working in the agricultural sector and the said sector is least documented as compared to other.

Federal Board of Revenue (FBR) Chairman FBR said tax on middlemen working in the sector has been increased by ten percent as a middleman earning 1.2 million rupees annually and now he will have to pay Rs 2500 tax on his income.

Speaking on the occasion, the Governor State Bank of Pakistan Raza Baqir said that when inflation take places then we have to recognize interest rate and when central bank stops money trail then inflation rate rises he urged overseas Pakistanis to explore opportunities in the country.