SUNDAY DECEMBER 09: Broadening tax base: government considering introducing amnesty scheme, says Hafeez

LAHORE: Federal Finance Minister Dr Abdul Hafeez Shaikh has said that trade ties with the US had been under discussion following the resumption of strategic dialogue between the two countries. He was talking to media persons after addressing the seventh convocation of the Beaconhouse National University in Lahore on Saturday.
Dr Hafeez Shaikh said that the US had assured Pakistan of all-out help to meet its energy crisis and in this regard, it had decided to extend financial support towards the construction of Diamer-Bhasha dam. "In the first phase, the US will extend financial assistance of $200 million to Pakistan for a feasibility report of the dam," Shaikh said, adding that the dam would be completed in 10 years.
He said the government was focusing on expanding tax net and in this regard, it was considering introducing a tax amnesty scheme. He also said that for the past two years, the government had been working to put the Sales Tax system on the right path. He observed that people living in posh localities were not included in the tax net, adding that efforts were being made to add at least two million people to the tax base.
Highlighting the PPP-led government's achievements, he said that when the government came to power, the inflation rate was 25 percent, but now it was just 8.5 percent, while tax collection had been increased from Rs 1,000 billion to Rs 2,000 billion. He said that by the end of the current fiscal year, the figure would touch Rs 2,300 billion mark, adding that remittances would cross $15 billion and the growth rate would be four percent.
About the rupee-dollar parity, Dr Hafeez pointed out that the Pakistani currency's depreciation rate was lower than other countries. The Finance Minister admitted that the pace of privatisation was slow and it was "a debatable issue". "Due to global economic slump, the privatisation process is slow," he said. Earlier, 315 students received their degrees. These included 170 graduates of M Phil, MS and Masters degree programs and 145 of Bachelor degree programs. Chairperson of the Board of Governors of Beaconhouse National University. Nasreen Kasuri, Khurshid Mahmood Kasuri and vice-chancellor Sartaj Aziz also attended the function.