Minister of State for Finance and Revenue Hina Rabbani Khar on Friday made it clear that International Monetary Fund (IMF) did not set any condition of taxing agriculture. She also informed the National Assembly that black money amounting to Rs 21 billion has, so far, been legalised through Investment Tax Scheme.
Responding to a question in the National Assembly, the minister said the fears among public that the IMF package entailed some harsh conditions, which would further add to their financial woes, had no basis. She said that inflation is the largest tax on public and "we have to control it".
She said that the government knew that agriculture was provincial subject and under the Constitution federal government could not impose taxes on it. "Pakistan outstanding domestic loans as on September 30, 2008, amounted to Rs 3373.7 billion. Total amount of foreign loans as on June 30, 2008 is $40.243 billion", she added.
Hina Rabbani said government has already provided Rs 29.64 billion subsidy on electricity to consumers from July to October 2008 and there is no proposal under consideration to increase its volume. Black money worth Rs 21 billion has been whitened through the scheme introduced in the fiscal bill 2008-09 to increase revenue collection.
This facility will remain available till December 31, 2008, she said while responding to another question. Circulation of fake currency has been controlled to a large extent through inculcating awareness and using different color schemes in printing notes of different denominations.
The State Minister further said foreign exchange reserves were depleting due to many reasons including the imbalance in inflows and outflows. The inflows decreased due to less exports and steep decline in Foreign Direct Investment (FDI). The outflows increased due to debt servicing and other payments eg extra $5billion paid on account of oil purchase.
When asked whether $4billion capital flight was justified for which an SRO was issued by the government, she said: "The SRO was in gazette books, we can argue that we can allow legal foreign exchange flight but I must say the House may pass legislation to ban foreign exchange flight".
To a query that big names involved in money laundering cases were often released, she said those people dealing in foreign exchange through unofficial channels will not be allowed. Pakistan cannot afford to completely ban the import of luxury items as they are taxed heavily, which includes luxury cars, she said, adding that if the people want to pay the taxes on luxury items, then government's job is to find a way out.
On a query regarding purchase of land in Pakistan by foreign nationals, Parliamentary Secretary for Interior Captain Mujtaba Kharal (Retd) said that No Objection Certificate (NOC) is issued by the ministry after checking the credibility of the buyer, but not a single NOC has been issued to any Afghan national and same is the case as far as India is concerned. Another MP said that most of the Afghan nationals who are having property in Pakistan bought it by using fake ID cards.
The National Assembly was also informed that an amount of over Rs 3.8 million had been paid to the legal heirs of 17 deceased persons of F-8 Markaz bomb blast and 43 injured. Interior Advisor in a written reply informed the National Assembly that Rs 1,700,000 has been paid to 17 legal heirs of deceased persons while Rs 2,150,000 paid to 43 injured.
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