Elite major hurdle in tax base widening: Hafeez tells Senate

Federal Finance Minister Dr Abdul Hafeez Sheikh on Wednesday termed the "elite" of the country as a major hurdle in broadening the tax base and responsible for promoting culture of tax evasion, which is dragging the economy away from self-reliance.
Replying to several questions in the Senate, he said that the culture of tax evasion was responsible for escalation in domestic debts, which was a major challenge for the country in accelerating economic growth. "On the one hand, we are vying for self-reliance but, on the other, avoid paying taxes. In such a situation, the dream of self-reliance can not be materialised," he said.
Inflation has been tempted mainly by food prices increase in support price of major food crops like wheat, sugarcane. Unbearable raise in freight and transportation costs also contributed to surging inflation, he added. The minister confessed that foreign loans were also a reason for increase in the inflation rate. However, the money was borrowed by previous government, he added.
In response to a supplementary question, the minister reiterated his government's resolve to encourage higher education, informing Senate that despite freezing the budget of all other departments, Higher Education Commission (HEC) resource allocation was increased by eight percent. He assured the house that the requirements of all those students who had been sent abroad by HEC would be fulfilled at all costs, so that they could easily complete their education. In addition, HEC's projects at advanced stage would be completed on schedule, he added.
In response to the demands of the university teachers, Dr Hafeez said that a committee has been constituted to sort out the issues. He, however, denied the statement that the government would be unable to pay salary to employees after two months. "I was misquoted regarding the non-payment of salaries to the employees," he added. He said that the government was taking pragmatic steps for the development of economic sector and all resources would be mobilised for the purpose. Meanwhile, Awami National Party (ANP) members staged walk-out from the House, condemning fresh spree of target killing in Karachi.