Prime Minister's Adviser on Finance Shaukat Tarin said that all sectors of the economy should be brought into the tax net for fair play and promotion of tax culture in the country. In an interview to a private TV channel, he admitted that the government has to make difficult political decisions for improving taxation system in the country.
Replying to a query, he said all issues have been resolved with the IMF technical team and the next phase of the talks will be focussed on the payment. He said first time in the national history agriculture sector would be brought under tax net.
Tarin said he has full support from President Zardari for improving the tax system adding that the tax rate will be enhanced to bring it to the 15 percent of the gross national income.
He said borrowing loans from IMF is one of our last option to cope with the current economic crisis. Pakistan has presented the plan to IMF and IMF sent a team to Dubai to analyse the plan, now negotiations with it have concluded successfully, he remarked. IMF will take our plan to its board by November 15, he added.
"We are going to Saudi Arabia on November 4 and 5 so we will not require IMF support in case we succeed in getting money from Saudi Arabia. But I think that IMF has accepted our conditions so we will try to take it from Friends of Pakistan" he said.
"We want to present a comprehensive solution to the current economics issue. IMF has not given its own plan or coordinations and we are carrying on talks on our own terms." He alleged that the previous government did not raise prices with a fear that it would make the then ruling party unpopular in the masses during the election year."
If there is any proposal from the stock exchanges relating to the reduction in capital value tax (CVT), then this could be reviewed in the next budget, he said. He said if the proposal for slashing the CVT was sent, then it could be seriously considered but only in the next budget.
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