Finance Minister Mifta Ismail said on Thursday that there was nothing wrong with taxing the rich as they were “able to pay” as he spoke of the government imposing additional taxes on industries and wealthy citizens.
“In Pakistan, it is the poor who always bear the burden of taxes,” he said in a press conference with Information Minister Maryam Aurangzeb in Islamabad.
“But the Shahbaz-government has decided to tax the income of the rich. This time, we will ensure that the sacrifice is shared,” he said, adding that this was evident in the “progressive” and “historic” budget. for the new financial year.
“You have always seen that the previous governments had imposed tax on consumption which had an adverse effect on the poor. But we have not increased any indirect tax or tax on consumption in this budget.”
The minister said the government has decided to impose additional taxes on the rich and some industries – one of them being the sugar industry.
“Those whose annual income is more than Rs 15 crore will be increased by one per cent tax, those with income of Rs 20 crore or more will have to pay an additional tax of 2 per cent and those with income above Rs 25 crore will have to pay an additional tax of 3 per cent. “
He said that the tax on companies owned by the sons of the Prime Minister has also been increased. “Even my company will have to pay more tax now,” Ismail said.
Earlier this month, the minister introduced the coalition government Federal Budget 2022-23 In the National Assembly, which proposed an outlay of Rs 9.5 trillion, which is nearly Rs 1 trillion more than last year’s outlay.
However, due to the delay in passing the budget Reservation by the International Monetary Fund (IMF) at the estimated expenditure by the authorities.
More funds reached Pakistan on Tuesday sense After the officials on the budget committed to generate 436 billion rupees more tax.
Sources said the government would impose poverty tax of 1 per cent on companies earning over Rs 15 crore, 2 per cent on those earning more than Rs 200 crore, 3 per cent on earning more than Rs 250 crore and 4 per cent on earning more than Rs 300 crore. It has also been agreed to levy a percentage tax. In the original budget, the government had set a poverty tax of 2 per cent only on those earning Rs 300 million and above.
In today’s press conference, Ismail reiterated that Pakistan has successfully reached an agreement with the IMF on the budget.
“Tomorrow (Friday), I will give a closing budget speech in NA after which we will close the budget.”
The minister said that Pakistan has a habit of taking money from other countries as a result of which the total deficit of the country has increased.
“This progressive budget will reduce our dependence on debt and money and make us truly independent.”
‘Pakistan out of crisis led by Imran’
The Finance Minister said that due to the economic policies of the former PTI government, the government was forced to take tough decisions.
“Imran Khan and his party led Pakistan to four of the biggest historic budget deficits,” he said, claiming that the gap between expenditure and taxes during PTI’s tenure was the largest in the country’s history.
“Those who lecture us today, I want to tell them that you have left the country on the verge of collapse. I have never seen such touch-and-go situation in Pakistan. You have left behind billions of rupees shortfall. Where was your concern for the nation then?”
The minister claimed that Imran backed out of his agreement with the IMF after he learned that he would lose the no-confidence vote, putting the country on the verge of default.
“You say people shouldn’t be neutral […] You should be pro-Pakistan in that matter.”
The minister further said that the coalition government worked day and night to bring the country out of dire economic condition. “The stock market is up, the rupee is recovering and slowly we are getting financially stable.”
Ismail acknowledged that inflation is still very high in Pakistan, but promised that “in a month or two”, the situation would be brought under control.