FAISALABAD: State Minister for Finance Rana Muhammad Afzal Khan on Saturday said the federal budget 2018-19 will be business friendly and utmost efforts would be made to make it tax-free.
He was addressing a function at the Faisalabad Chamber of Commerce and Industry (FCCI) in which draft of budget proposals was presented to him.
The minister said that there is no doubt that the government is facing multiple challenges but it is putting in an effort to continue the existing pace of economic growth.
Underlining the importance of the industrial sector, he said the government fully understands that progress and prosperity are directly linked with industrial growth and he will visit Karachi, Sukkhar, Peshawar and other cities to discuss matters of mutual interest with all sectors of the economy. He said the government will formulate the budget without any ad hoc or short-term benefits.
“We are hoping to return after the coming general elections and hence we don’t want to create any economic problems for the next government”, he said and added that political governments always prefer to avoid new taxation.
“We will try our best to enhance revenue by improving the existing tax recovery system in the country”, he added.
Regarding the attitude of the tax collectors, Rana Muhammad Afzal said that being a businessman, he himself feels that the attitude of tax collectors should be improved and in this connection, a systematic effort would be made by restricting direct contact between the taxpayers and tax collectors.
He said the Federal Board of Revenue (FBR) would be requested to bring each and every person with taxable income into the tax net respectfully. He added that the FCCI should also cooperate in this drive and request its members to pay taxes voluntarily if they fall within the requisite slab of income tax.
He said that it will indirectly benefit the business community as it will help them to maintain books of accounts which are a prerequisite to launching joint ventures with their counterpart by submitting their balance sheet.
He said that the government should clearly differentiate between filers and non-filers in order to streamline the tax system.
Regarding tax rate, he disclosed that the government is actively considering a proposal to increase the minimum tax slab to Rs600,000-Rs800,000.
Regarding corporate tax, he said that it could be reduced to 15 per cent if the kitty is able to absorb this decrease.
He also mentioned his visit to Italy and said during this visit three MoUs were signed under which Institute of Marble Cutting and Polishing, Institute of Leather and Shoes, Institute of Fashion and Design and Institute of Knitwear would be established.
He said that he will try his best that Institute of Fashion should be housed in National Textile University. He told that commercial attaches are being deputed in 58 countries which will give a quantum jump to Pakistan’s exports.
Earlier, in his welcome address, FCCI President Shabbir Hussain Chawla underlined the need of revenue collection for smooth growth of national economy and said that basically taxes are by-products of businesses and the government must facilitate businessmen to increase its revenue.
Later, APTPMA Chairman Khalid Habib Sheikh handed over draft budget proposals to Rana Muhammad Afzal Khan while former President Sheikh Abdul Qayyum presented him FCCI shield.
