Finance Minister Dr Abdul Hafeez Sheikh has implored Parliamentarians to set an example by paying their due tax and convince others that payment of tax is their primary obligation. Winding up budget debate in the National Assembly on Friday, the Minister told the Parliamentarians that they have to pay taxes if they wanted better water, health and education facilities as well as low inflation in the country.
The only way to make Pakistan prosperous is that those sitting in the both the houses of the Parliament pay their due taxes and also convince others to pay taxes. "The leadership starts at the top" the minister said referring to the Parliamentarians on both the sides of isle and asserted "we cannot seek sacrifices from others unless we sacrifice our self". "I appeal to this Parliament, top bureaucracy, big businessmen and media houses to please think of this (paying taxes) as national duty and lead by an example", he added.
The federal minister said that all those who are earning incomes should pay taxes to lead the country towards self-reliance, progress and prosperity through contribution by all the sectors whether trade, industry or agriculture. The minister also appealed to the provinces to bring the agriculture income into tax net according to expectations of the people. Hafeez Sheikh also called upon the politicians to be united on some of the issues and if they could not go along smoothly they shouldn''t fight with each other for the sake of the country.
The minister said that the main focus of the federal budget 2011-12 was to control inflation by reducing fiscal deficit and providing relief to the masses. He assured the lower House of the Parliament, that the government would incorporate 30 specific proposals in the budget and would review the general proposals recommended by the Senators to ensure that these are incorporated in the economic polices in the coming days. The Minister also mentioned about the economic challenges in 2008 when the present government took over with higher fiscal deficit and inflation and depreciating value of the rupee. He said that some difficult decisions taken by the government after coming into power had helped reduce inflation, achieve growth and reform the tax sector.
The minister also mentioned three major events in the out-going fiscal year have ruined everything. The floods destroyed 30 percent rice crop and badly affected other major crops, besides causing damage to the infrastructure, including roads, hospitals, schools, industries and oil refineries. The second was the security situation which had not only added fiscal pressure on the budget but also affected investment and consequently enough employment opportunities could not be created to cater the needs of youth. The third was the unforeseen rise in the prices of oil in the global market due to Middle East crisis, which also affected the budgetary estimates and was one of the reasons of fuelling inflation in the country. The government decided to slash current expenditure and saved Rs 20 billion from the non-salary expenditure frozen at the previous year level and development budget was reduced to compensate the flood affected people.
About the next year budget, he dispelled the impression of the members that nothing was done for the low income groups and stated that 15 per cent increase was being given in their salaries for the next fiscal year which was in addition to 50 percent increase allowed in the outgoing fiscal year. To provide relief to the common people, the minister said that no new tax was imposed instead many existing taxes have been abolished. The minister said a major programme for social sector, Benazir Income Support Programme (BISP), was launched to provide relief to the poor and Rs 70 billion have been distributed among 4 million people during the last two years. He said that Rs 65 billion have been earmarked for the next fiscal year. Moreover, he said that the government decision to abolish Regulatory Duty on 392 items, withdrawal of Special Excise Duty and removal of Federal Excise Duty on 17 items would also help in reducing inflation.