Govt dismisses reports about revising tax rate for salaried class

ISLAMABAD: The federal government has rejected media reports about its plan to revise tax rate for salaried persons and increase in gas and electricity tariff.

Briefing media on decisions of today’s federal cabinet meeting, Information Minister Fawad Chaudhry said, “All the media reports about revising tax rate for salaried class and increase in gas and electricity prices are baseless.”

He said it is the philosophy of the PTI government not to add burden on salaried class and farmers.

Fawad Chaudhry said the cabinet decided to abolish the Ministry for Capital Administration and Development Division. He said Capital Development Authority will work under the Ministry of Interior.

The Minister said the drive against encroachments in Islamabad will continue. He said the government has so far recovered state land worth Rs 7.5 billion from illegal occupants, Radio Pakistan reported.

Giving detail of expenses and income of the ongoing Metro Bus projects, Chaudhry Fawad Hussain said the government had to pay a total of Rs 8 billion subsidy annually on the Metro Bus services being run in Lahore, Rawalpindi and Multan.

He said Rs 4.2 billion subsidy is being provided on Lahore Metro Bus and two billion rupees each on Rawalpindi and Multan Metro Bus services.

“In a country where people are crying for clean drinking water and health and education facilities, we are paying Rs 8 billion subsidy just to run three metro bus projects. Therefore, the cabinet has decided to hold audit of these projects,” the minister stated.

He said Punjab government will decide whether to continue this heavy subsidy on Metro trains or not.

The Minister said on completion, Rs 3.5 billion subsidy will have to be provided on Orange Line Metro Train Lahore.

He, however, said Peshawar Metro Bus project will be completed at a cost of Rs 67 billion, and the government will not have to provide any subsidy on it. He said the buses have been purchased instead of hired on rent.

Chaudhry said Rs 2.3 billion were spent by the Prime Minister Office, Rs 2.9 billion by Punjab Chief Minister Office, and Rs 1.4 billion were spent by Punjab Governor House during the last five years.