Making financial constraints an excuse, Chairperson National Assembly’s Standing Committee on Finance, Revenue and Economic Affairs Fouzia Wahab Friday made it clear that the government might not increase the salaries of the govt servants in the coming budget 2011-12, as she believed that the government does not have enough financial resources.
Talking to the media persons after chairing the meeting, the Chairperson said the government would introduce Reformed General Sales Tax (RGST) in the coming budget to be presented on May 28,2011 which would increase the government’s resources. She further said the government was working to broaden the tax base, as more than seven million people are enjoying tax immunity, however the government would bring them in the tax net from the next fiscal year, she added.
“The government is planning to keep fiscal deficit at 4.5 per cent and the revenue collection target will be around Rs 1950 billion for the next fiscal year,“ She informed.
Talking to the media, MQM MNA Abdul Rasheed Godil said the government should bring agriculture sector under the tax net from next fiscal year.
Earlier, the officials of Finance Ministry and Federal Board of Revenue (FBR) briefed the Standing Committee regarding upcoming budget. The committee welcomed the efforts taken by FBR to bring non-taxpayers into the tax net. The committee also appreciated FBR’s idea for including the National Tax Number under the head of National Identity Card Numbers in order to involve maximum tax paying people in the network to strengthen the collection mechanism. Meanwhile, the committee directed the FBR to take strict measures to overcome the flaws in the existing tax collection system of the country. Similarly, the committee also recommended that FBR should pursue their pending court cases effectively to get huge amount of taxes that is stuck due to absence of adjudication.
Chairman Federal Board of Revenue Salman Siddique gave a detailed briefing on the revenue collection in the current fiscal year and also on the revenue collection target for the next fiscal year. He was of the view that the government would be able to achieve the revised target of Rs 1,588 billion at the end of June.
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