Federal Minister for Finance Miftah Ismael said on Monday that the government International Monetary Fund (IMF) deal was expected in a day or two.
The minister stated this while speaking to media after a meeting of the Senate Standing Committee on Finance.
He dispelled the impression that there was any deadlock with the Fund over the payment of salaries.
He said the government planned to tax the rich people while exempting those who were poor.
There is a lot of uproar over the government’s negotiations with the IMF these days as there has been an unprecedented increase of Rs84 per litre in the price of petrol by the government in just two weeks. And the hike in petroleum products’ prices is one of the conditions laid down by the Fund for the deal.
Similarly, the money lending organization has also demanded excessive taxation from the government, which certainly will have a direct impact on the lives of ordinary people.
Only six days ago, on June 14, 2022, the government had agreed to accept the demand of the International Monitory Fund (IMF) to withdraw the income tax exemption proposed in the budget for the fiscal year 2022-23.
Sources, however, told that the government had decided that the relief given to the low-paid classes will be maintained.
The sources said the government was considering raising the amount of income tax on the people receiving monthly salaries of above Rs500,000.
The sources further said that consultations with the IMF were still going on and efforts were being made not to burden the people with income tax, drawing monthly salaries between Rs100,000 and Rs200,000.
Also six days back, the global lender has expressed its concerns over budget asking Pakistan to take more strict measures in terms of tight fiscal discipline if it wants the revival of the $6 billion loan programme.
Meanwhile briefing the committee, Miftah Ismail said that government will not take any tax if builders start construction of the plot. however we will take tax if the plot remain vacant, he added.
The committee members asked the Finance minister not to tax vacant plots for a specified period.
The Finance Minister agreed to the proposal with regard to not tax vacant plots for a specified period.
Miftah ismail also said that Companies will pay 2% additional tax on annual profits of Rs 300 million.
Committee member recommended that income of more than Rs300 million should be taxes.
Finance minister replied that I agreed with the proposal but we need money.
On this occasion, Senator Shaukat Tarin said that “I agree with Miftah but he should cut another pocket”.
On this, Ismail said that government will cut many more people’ pockets.
Officials of the Pakistan Pharmaceutical Association (PPA) informed the minister about their concerns regarding the non-payment of sales tax refunds.
former finance minister on this occasion said that what steps have been taken to bring pharmaceutical companies under sales tax?
The same factory with pharmaceuticals is making juices as well as makeup products and they are not paying sales tax adding that he said that If they taxed less than 17 sales tax, they will not pay.
The minister expressed his commitment to resolving the issue of refunds of the sector on a priority basis.
While criticizing the present government policies, former Finance minister said that country would be face skyrocketing inflation of 35percent due to increase in petroleum prices.
Replying to this, Finance minister said that Prime Minister Shahbaz Sharif angry over tax hike but I tell the Prime Minister that if we don’t increase taxes, how will the income increase?
The Committee under the chair of Senator Saleem Mandviwala reviewed and finalized the budget recommendations made in the previous meetings of the Committee, regarding Finance Bill 2022-23.
A detailed report containing the budget recommendations made by the Standing Committee will be presented in the Senate session.
Miftah smile is not good, Prices are increasing day by day