ISLAMABAD: Federal Minister for Finance and Revenue, Shaukat Tarin, along with Pakistan Stock Exchange (PSX) CEO and MD, Farrukh H Khan, reviewed proposals for Federal Budget 2021-22 (FY22) here on Monday.
He was chairing a meeting here at the Finance Division wherein Adviser to PM on Austerity and Institutional Reforms Dr Ishrat Hussain, SAPM on Finance and Revenue Dr Waqar Masood, FBR Chairman and Secretary Finance Division were present.
The PSX MD submitted proposals to align rates of capital gain tax on disposal of securities in line with regional practices, rationalisation of tax rates for companies listed on the stock exchange, enhanced tax credit for listed small and medium enterprises, unlocking the potential of private funds and other suggestions to help broaden the tax base.
He gave a detailed presentation on the huge impact of stock markets on wealth creation and mobilisation of capital. He said that a broad-based capital market helped to achieve important economic and social objectives like increasing the number of taxpayers, optimising savings and investment rates, and reducing wealth inequalities.
“Tax measures are an important policy tool to increase investments and savings in the economy and to stay competitive with other markets,” he added.
Tarin appreciated the recommendations and said the government was strongly committed to strengthening of the financial markets and was ready to adopt measures that could mobilise capital to more productive sectors.
He further stated that the government was considering to introduce new tax regime that was in accordance with the changing economic environment.
Earlier while chairing the National Price Monitoring Committee (NPMC) meeting on Monday, the federal finance minister directed the provincial governments to continue daily release of subsidised items including wheat to consumers.
The NPMC reviewed the price trend of essential commodities especially wheat flour, chicken, eggs, sugar, pulses and edible oil during the week under review.
While briefing the NPMC about weekly SPI, the secretary Finance Division apprised that there has been a continuous decline in the weekly SPI over the period of last two consecutive weeks which is a positive sign indicating ease in inflationary pressures.
The weekly SPI decreased to 0.61 per cent on June 3 and 0.63pc during the preceding week. The consolidated and coordinated efforts of the Federal as well as respective provincial governments and departments concerned have yielded consistent results.
The committee was further briefed that the declining trend in food inflation is being witnessed in the midst of tremendous price hike in international commodity prices during the ongoing Covd-19 pandemic, particularly the third wave.
It was agreed that going by the aforesaid international trend, the domestic price hike couldn’t be avoided as Pakistan is the net importer of staple food commodities like Wheat, Sugar, Edible oil, pulses etc.
However, the finance minister directed the authorities concerned to work out modalities to maintain strategic reserves of sugar and wheat to ensure smooth supply at affordable prices during the upcoming financial year (FY22).
He also directed to initiate an international procurement drive of wheat and sugar through public, private and G2G arrangements.
“The government will import up to 4 million metric tonnes of wheat from July 2021 onwards to build a strategic reserve of wheat,” he said.
Similarly, Shaukat Tarin directed the Ministry of Industries and Production to consult the Ministry of Commerce and provincial governments and present an estimate for importing sugar in the next NPMC meeting.
