Minister of State for Finance and Revenues Dr Aisha Ghaus Pasha Wednesday said Pakistan wants to continue its program with the International Monetary Fund (IMF) and all efforts are being made to reach an agreement with the lender.
“We’re moving forward and there’s regular contact. The Finance Division and Federal Board of Revenue (FBR) are having regular meetings with the IMF”, said the minister while talking to media persons.
Regarding preparations for the federal budget 2023-24, the minister said the groundwork was underway and the government will try its best to provide relief to the people despite the prevailing economic situation.
She said all macroeconomic framework parameters had been completed. Budget figures are being finalized and the Finance Bill will be introduced in the first week of June.
Meeting of Senate Committee
Earlier today, the minister informed the Senate Committee on Finance and Revenue that various measures were underway to curb all types of smuggling, including sugar. Adding to this revelation, FBR Chairman Asim Ahmad said an updated report on the matter has been submitted for review.
Pasha said that new sectors will be added to the tax net in the upcoming fiscal year’s budget. She emphasized the importance of increasing the tax-to-GDP ratio and lowering the tax burden on the common man. The minister also said that the FBR will raise direct taxes in the new budget.
She bemoaned the fact that the tax-to-GDP ratio is less than double-digit, which raises the fiscal deficit and forces authorities to seek loans. As a result, the government is forced to levy additional taxes, which harms the economy.
FBR
Separately, FBR Chairman also briefed the committee on Capital Value Tax (CVT) collected in the fiscal year 2022-23 (FY23). He highlighted that Rs. 9 billion has been collected in CVT so far during FY23.
In response to the committee’s reservations about the imposition of such a tax on local and foreign assets, the chairman explained that the tax was critical for bringing high earners and asset holders into the tax net.
SECP
The Senate panel discussed the matter of a 350 percent increase in fee registration for companies by the Securities and Exchange Commission of Pakistan (SECP).
SECP Chairman Akif Saeed briefed the committee that the reduction in registration fees made in 2019 has now been withdrawn. He said the regulator was facing heavy losses because of the reduced charges and had no other choice but to restore registration charges at a premium.
After further discussions, the committee directed SECP to submit details on the fee structure for registration of companies.
