By Ali Imran
ISLAMABAD: Minister of State for Finance Dr Aisha Ghaus Pasha has categorically stated that Pakistan is not facing any risk of default.
Addressing the launching ceremony of the special report titled “Economic Security of Pakistan; Challenges and Way Forward” in Islamabad on Monday, she said Pakistan has ensured external financing needs for the next year. However, the challenges on the economic front are significant.
She said due to prudent economic measures taken by the government the rupee has gained strength and imports have been significantly reduced.
Highlighting the importance of sustainability in the current economic success of the government, she emphasized structurally reforming the economy to get out of this boom-bust cycle.
She said tax compliance has to be increased and decision-makers need to think beyond politics and personal interests while devising tax policy. She said all stakeholders should keep Pakistan first. She said structural reforms in the economy have to be undertaken with the consensus of stakeholders to put Pakistan on sustainable growth.
The Minister of State for Finance said without consistency of economic policies we cannot lead our country on the path of human security. She said in today’s world national security cannot be secured without human security.
Meanwhile, the incumbent government on Monday imposed new taxes of more than Rs70 billion through a mini-budget.
According to the Presidential Ordinance, a sales tax of up to 7.5 per cent has been imposed on the electricity bills of traders, and 5pc sales tax will be imposed on the electricity bills of traders less than 20 thousand, and 7.5% on the bills of traders in case of a bill of more than 20 thousand. There will be a percentage sales tax, the government is likely to get about Rs 27 billion in taxes from this initiative.
While Federal Excise Duty (FED) on imported vehicles including limousines, sports vehicles and pickups has been increased through the mini-budget. The government will get up to Rs14 billion by increasing the FED rate on imported vehicles.
On the other hand, the FED rate has not been increased on imported vehicles used for public transport or delivery of goods.
The tax on tier one 1000 cigarettes has been increased to Rs 6,500, the income tax on diplomats, which was mistakenly imposed in the budget, has been abolished, the tax exemption on Kuwait Foreign Trade Contract Company has been restored, and the sales tax on electricity bills will be imposed on traders up to 7.5%.
