SUNDAY JANUARY 23: Some elements financing campaign: Hafeez speaks on resistance to RGST

KARACHI: Federal Minister for Finance and Economic Affairs Dr Abdul Hafeez Shaikh has said elements who do not want to see the documentation of economy have financed and supported an anti-Reformed General Sales Tax (RGST) campaign. Addressing the members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at the Federation's House here on Saturday.
He said that anti-RGST campaign was a conspiracy against the efforts aimed at documentation of economy and despite removal of all disputes the RGST had not been implemented. Hafeez said the Senate had already passed RGST bill and it was now in the National Assembly for approval, and "we need support of all political parties to pass this bill."
"We request all of them, who want self-reliance, should support this bill and I assure you it will make economy documented, create transparency and will help raise revenues," he said. He defended the levy of RGST and said "some people" were afraid of it only because they did not want documentation of their businesses. However, he added, the government believed that its imposition would be the first step toward achieving self-reliance and documentation of economy.
"The government is already engaged in talks with all political parties to get their support on RGST. I assured that it will not be imposed on small businessmen and food items," he added. He also announced the formation of a six-member committee (also comprising representatives of FPCCI) to help resolve the RGST and other economic issues related to business community.
"The Present government had inherited serious economic problems like high inflation, burgeoning fiscal deficit and low economic growth," he said and added that in order to reduce fiscal deficit it was required to withdraw subsidies on petroleum and electricity and slash current expenditure. He informed the business community that under the 7th National Finance Award, provinces now have more resources than Federation, and that over Rs 300 billion would be transferred to provinces.
The minister said the increase in world oil prices was disturbing the economic targets and on domestic front, reversal of decision was actually against the country's interests. According to him, the federal government has planned to freeze expenditures at last fiscal year's level and it had urged provinces to also cut their expenditure and improve fiscal imbalances. He said levy of agricultural tax is a good suggestion. "However, it's provinces subject," he added.
Talking on the refund issue, he said the ministry of finance had appointed some honest officers for refund. According to him, as many as 24,196 cheques of Rs 17.8 billion in the head of refund claims had been cleared in the last three months. President FPCCI Senator Haji Ghulam Ali, Chairman, Businessmen Panel at FPCCI and former president FPCCI Tariq Sayeed Khan, FPCCI Vice Presidents, President India-Pakistan Chamber of Commerce and Industry, and former president FPCCI, S. M. Muneer and Vice Chairman SAARC Chamber of Commerce and Industry, former president FPCCI Iftikar Ali Malik, Advisor to Federal Textile Ministry Dr Mirza Ikhtiar Baig and others also speak on the occasion.