ZAHEER ABBASI

ISLAMABAD: Finance Minister Miftah Ismail announced that a new export package is in the making to be unveiled in a few days to further augment growth in the country’s exports.

Winding up debate on budget in the National Assembly, the minister stated that while considering the proposals of the members of the Parliament, some amendments have been proposed in the budget. “We have decided a new export package to further boost the exports, which had been on downslide during the last few years and are now showing some growth subsequent to the measures taken by the incumbent government as well as depreciation of exchange rate,” he added.

Miftah Ismail said that Rs24 billion have been set aside for the next export package in the budget and, if required, more funds will be arranged through supplementary grants for the new export package, which will be announced in a few days.

He said that other proposed amendments in the budget are provision of cash award for IT and IT related exports, continuation of tax exemption on IT and IT related exports till 2025, and a reduction in sales tax on IT and IT-related services in the federal capital.

“We have also decided to defer electricity payables of farmers for one year and decided to provide a 25 percent reduction to those farmers who will pay the bill in the first quarter of the next fiscal year. The finance minister also announced a one percent reduction in income tax rate annually for individuals, association of persons (AOP) and companies to bring it down to 20 percent from 25 percent.

The government, he said, also proposes a scheme for agriculture sector in collaboration with provinces to overcome the shortage of gypsum in agriculture fields by providing a subsidy of Rs 2,000 per acre to small farmers with the holding of 12.5 acres of land.

Miftah Ismail also announced a 50 percent increase in conveyance allowance for those grade 1-16 grade employees who work late hours. The minister added that those who will construct low-cost houses for the poor up to Rs 2.5 million will get a 50 percent exemption in income tax.

The government, he said, has also decided to reduce the minimum tax for commercial exporters to 5 percent from 6 percent and proposes 1 percent across the board tax on LNG import and limit for non-filers to purchase property was suggested to be increased to Rs5 million from initially proposed Rs 4 million.

Ismail said that other proposed amendments in budget for the next fiscal year on the recommendations of the Senate Standing Committee on Finance included a reduction in sales tax on fish babies to 5 percent for promotion of fisheries, federal excise duty of Rs2,000 instead of Rs2,500 on long route air travel and exemption in sales tax to match industry.

The minister said that of 157 recommendations to the budget for next fiscal year received from the Senate, 108 were related to the Federal Development Program and they have been forwarded to the Ministry of Planning, Development and Reform while 49 were related to Finance Ministry. The minister said the Finance Ministry has approved fully or partially 42 proposals out of 49 and termed members’ assertions during the debate of providing Rs184 billion relief and imposing Rs400 billion new taxes as inaccurate and baseless.

He said the government has provided a huge tax relief to every segment of society in the budget and substantially reduced tax burden of low-income groups.

The minister added the government has neither imposed tax on petrol and diesel in the budget nor does it intent to do so and claimed that adjustment in the upper limit of Petroleum Development Levy is not going to increase the prices of petroleum products.

The minister also dismissed as baseless parliamentarians’ contentions during the debate on budget that the government failed to address the load shedding problem and stated that 12230 megawatts of electricity is added to the system during the last five years.

Miftah Ismail, however, acknowledged failure on recovery side and stated that increase in power generation will also propel quantum of circular debt. He said that Rs150 billion have been earmarked in budget for power subsidy and avoided imposing new taxes. He also claimed that previous government added more debt, gross and net, than the present government.

Earlier, soon after the finance minister started winding-up debate, the opposition pointed out quorum which upon a count was found in order and the minister was allowed to complete his speech.