Taxes to be reduced once the economy stabilises: Revenue minister

F.P. Report

LAHORE: Federal Minister for Revenue Hammad Azhar has said that the government was clubbing different taxes to save the businesses from hassle and it will eventually reduce taxes as the economy stabilises.

He expressed these views in a meeting with the textile mills’ representatives here in Lahore on Saturday.

Azhar said that the previous government had left a deficit of Rs. 2300bn due to which several sectors were under stress but financial support from friendly countries was improving things.

“We have started receiving positive indicators in the export sector”, he said.

He said that the government was committed to double the textile export in next five years, and steps would be taken to restart the industries closed due to previous governments’ economic mismanagement.

“The government will bring a new agriculture policy soon whereas a new policy related to polyester fibre will also be announced”, he said.

The minister said that the previous government spent $25-30bn only to support the rupee against the dollar, but now, the State Bank (SBP) had brought the rupee close to its original value.

“Budget deficit would have increased to 7 per cent of the GDP had the economy remained on the same track”, he said.

He said that the recovery of non-performing loans should be free of taxes whereas the government had already reduced sales tax on petroleum products from 52 per cent to 17 per cent.

Azhar also said that the fencing of Pak-Afghan border would help in curbing smuggling of various items which will save national exchequer billions of rupees annually.

“Prevention of smuggling would recover the fencing expenses within one year; this alone indicates the magnitude of losses that nation suffers due to smuggling”, he said.