Non-filers to pay 2pc tax on property sale, purchase: Dar

Budget proposals

Gives detailed presentation to cabinet; says Rs1,500 billion new taxes under consideration

ISLAMABAD: Minister for Finance Senator Muhammad Ishaq Dar on Wednesday said that non-filers of income tax returns had to pay two percent tax on the sale and purchase of property.

While giving a briefing to the cabinet on the budget proposals for the year 2016-17, he said that there was a propsal to impose Rs1,500 billion new taxes in the upcoming budget. Finance Division Secretary Dr Waqar Masood Khan also gave a detailed presentation to the cabinet members on the strategy being followed in the formulation of proposals for the next budget. The finance minister, while briefing the cabinet, said that the government was concentrating on major policy initiatives that were aimed at consolidating economic stability gains achieved so far and spurring inclusive and sustainable growth, creation of job opportunities and reduction in poverty.

The finance minister said when the PML-N took the reins of the government, the economy was weak and fragile and the growth rate averaged around 3 percent and inflation around 12 percent during 2008-13. The circular debt of Rs503 billion was crippling the power sector and economy. The fiscal deficit was hovering at around 8.8 percent and there were predictions of default. However, due to the economic policies of the government, the economy was now performing well. The fiscal deficit had been on target, closing at 4.3 percent in the current fiscal year ending June 30, 2016.

He briefed the cabinet on healthy improvements in the current account of balance of payment. The deficit in the current account had been reduced from $1.9 billion in July-March 2014-15 to $1.6 billion in the same period of 2015-16. He stated that the FBR’s tax collection had increased during the last nine months by 19 percent with  historic high tax collection figures of Rs2,103 billion. He said that there had been a considerable increase in the number of taxpayers in the last three years.

“In the medium term, our plan is to gradually grow the GDP to around 7 percent and contain inflation to a single digit i.e. less than 6 percent. We intend to bring down the fiscal deficit to below 4 percent in the next financial year 2016-17.”

The finance minister concluded that the GDP growth rate was projected to increase by 5 percent this year against the target of 5.5 percent mainly due to severe setback to the cotton crop. He stated that the projected growth rate would be the highest in the last eight years.

He informed the cabinet that this would be the fourth budget of the present government and with each year they carried forward the reform agenda with prudent fiscal policies that would bring development and prosperity for the people of Pakistan in the coming years.