Provincial Minister for Finance Makhdoom Hashim Jawan Bakht has said that consultation with stakeholders for budget preparation is top priority as economic revival is not possible without their due participation
Lahore (Pakistan Point News / Online - 10th February, 2020) Provincial Minister for Finance Makhdoom Hashim Jawan Bakht has said that consultation with stakeholders for budget preparation is top priority as economic revival is not possible without their due participation.He was speaking at the Lahore Chamber of commerce and Industry. The Minister said that major part of Annual Development Plan (ADP) is being spent to those projects that would promote trade and economic activities.
He said that an internal study has identified more than fifty taxes abolishment of which will not harm exchequer or Ease of Doing business index. National Tax Council has been asked to play its role for tax harmonization."We want to enhance tax-to-GDP ratio but not at the cost of economy", the Minister said and added that inspector less regime and digitalization would improve the EODB ranking. He said that work on E-payments system is well on the way and soon this system would be implemented.
He said that revival of construction sector is a must. He said that 16 per cent tax was imposed on this sector last year that has been withdrawn and a flat rate has been imposed. "We are looking to property tax, DC rates, Stamp duty & FBR rates and good news will be given soon", Provincial Finance Minister added.LCCI President Irfan Iqbal Sheikh drew the attention of Finance Minister to the unexpected slash in the Annual Development Program (ADP) expenditure over the time from Rs.
576 billion in 2017-18 to Rs.350 Billion in Budget 2019-20. He said that it has negatively impacted the ongoing infrastructure projects and other development activities in the province and has also resulted in an economic slowdown.He said that there should be a considerable increase in the size of Annual Development Program for the year 2020-21 to stimulate economic activity in the province.The Lahore Chamber of commerce and Industry President Irfan Iqbal Sheikh said that Sales Tax on services is being charged at different rates by Punjab Revenue Authority (16%) and Sindh Revenue board (13%) which creates an environment of competition among the provinces.
Uniform rate of Sales Tax on services should be charged by all the provinces.He said that Punjab holds paramount importance in Pakistan's Ease of Doing Business as Lahore holds 35% weightage in the calculation of overall ranking. There is a tremendous potential of improvement in the Paying Taxes' ranking as Pakistan stands at 161st position in this indicator.
