ISLAMABAD: Federal Finance Minister Ishaq Dar, cleared that no new tax had been levied in the federal budget that would adversely affect the public, however, income tax defaulters will be dealt with strictly. The government will continue to tighten grip around non-filers of tax returns to bring them into the tax net.
Dar also announced that the Rs180-million export relief will continue in the next fiscal year as well. He further forecast that the current government would present the sixth federal budget next year which would be unprecedented in the history of Pakistan and no constitutional amendments are needed in this regard.
“This is the best time to evolve consensus on the charter of economy for sustainability and achievement of socio-economic goals and macroeconomic stability. We should make a charter of economy and work towards the goal together. Even the [United Nations’] Sustainable Development Goals should be worked on by taking our economy into consideration” the Finance Minister observed while speaking at post budget news conference here.
Finance Minister said that main focus of the new budget was on economic growth, job creation, poverty alleviation and improving living standard of the common man. The government will have to work hard with unity to strength the economy of the country.
He said that work hard would be needed to sustain the 3.4% growth in agriculture sector and Rs1001 billion had been allocated for agriculture credit. Two million small farmers with less than 12.5 acres lands will be given loan up to fifty thousand rupees at 9.9 pct interest rate.
He further added that relief had also been given to farmers and poultry farmers by decreasing sales tax which would also have a positive impact on agriculture. The government will bear Rs13.8 billion loss for decrease of sale tax on DAP fertilizer.
The minister said that defence had been given preference in the budget and had been allocated Rs920 billion. Rs1001 billion have been allocated for Public Sector Development Programme (PSDP) which will reach Rs2100 after inclusion of the provincial PSDP.
He said the main targets are GDP at 6% and inflation 6% and the current expenditure would be kept below the inflation to reduce the budget deficit. The actual tax in this budget was 87 billion rupees because the total tax is 120 billion and 33 billion was relief.
Similarly, he said that safety net had been increased with Rs 121 billion rupees. Tax incentives have been given for agriculture and information technology. IT ministry will train one million freelancers to create new jobs for youth. He reiterated that load shedding would be completely eradicated in 2018, as 10,000 MW power would be added in the national grid next year.
While commenting on posts he had read on social media regarding the federal budget for fiscal year 2017-18, he cleared that price of milk had not been increased in the new budget. He assured to talk to people in Ministry of National Food Security the provincial governments regarding the matter.
“I don’t know how far it is true but the rate is the same as it was on July 1, 2016.There is no reason for sellers to increase the rate of milk. I’m giving a clarification because we have not taken any such step,” he assured. Dar also told the media persons about the three-year macroeconomic road map devised by the government, instead of a five-year plan.
Criticizing the practices of the past governments, the minister said in order to increase employment over-staffing was conducted in government departments. He claimed that the federal government, with the latest budget proposal, had achieved the goals it had set in its party manifesto.