AAMIR SAEED
ISLAMABAD: Federal Finance Minister Asad Umar on Monday welcomed “charter of economy” proposal floated by Leader of Opposition in the National Assembly Shahbaz Sharif during his debate on the Finance Supplementary (Amendment) Bill, 2018.
The minister said that finance committees of National Assembly and Senate are the best platforms available to build a consensus for a “charter of economy.”
Speaking on the floor of National Assembly, he said the committees of the Parliament work on the non-partisan basis, so consensus on the national issues like ‘charter of economy’ could be developed through the platform.
The finance minister also expressed his willingness to consider amendment in the Finance Bill to withdraw incentives like purchase of property and cars to non-filers of tax returns. He said that there was a difference of opinion on the issue, but the government would come up with a workable solution on it.
“We are ready for modification in the finance bill,” he said, clarifying that the government has imposed indirect taxes on the luxury vehicles and imported food items being consumed by the well-off people.
The minister said that no indirect tax has been imposed on the poor people, adding that the government would collect Rs 92 billion out of Rs 183 billion extra tax revenues mentioned in the finance bill through administrative measures.
He said the government is going after the tax evaders and advised the non-filers to pay reasonable tax amount on their incomes to avoid the crackdown.
The minister claimed that the Pakistan Tehreek-e-Insaf (PTI) government will spend 10 percent more on the development projects than the previous year’s total spending of Rs 661 billion.
He also said that total circular debt was Rs 1,180 billion and just one year loss of power sectors was Rs 453 billion.
The finance minister said that his government is offering Rs 44 billion incentives in gas price reduction to Punjab textile industry to increase the exports. He said the gas sector is making a loss of Rs 154 billion per annum and the government has taken measures to increase the gas prices without impacting the poor.
He said the government has increased 10 percent gas price for poor domestic consumers and over 140 percent for the affluent as per tariff determination by Oil and Gas Regulatory Authority (OGRA).
Talking about the investment under the China-Pakistan Economic Corridor (CPEC), he said that there were 75 percent loans and 25 percent equities in the power sector’s investment. He, however, acknowledged that the rate of the interest being paid on the investment was reasonable.
He said his government has taken measures to provide relief to the common man, adding that tax on the LPG price has been reduced from 30 percent to 10 percent while Rs 6-7 billion subsidy is being extended on fertilizers to give incentive to the farmers.
About $200 billion looted money stashed abroad, he said that former Finance Minister Ishaq Dar had made a claim about this money. He said the Prime Minister had set up a task force in the first cabinet meeting to bring back the looted money from abroad.
The finance minister also said that his government wants to maintain good relations with all neighboring countries including India.
