No GST hike in budget: Hafeez
ISLAMABD: Finance Minister Dr Abdul Hafeez Sheikh on Saturday said that rate of General Sale Tax (GST) would not be increased in Budget 2012-13 and the tax base would be enhanced through reduction in tax evasion.
Talking to a group of journalists here, Hafeez said the government would not take any measures in the budget that could create anxiety among people. The minister said no additional burden of tax would be put on people already paying taxes. He said no new tax would be imposed but the government would take measures to deal with exemptions. According to him, the tax slabs will be reduced.
The Federal Board of Revenue Chairman said the tax authorities have detected illegal input adjustment of Rs42 billion and are also making efforts to recover Rs81 billion from various sectors. He said that of Rs81 billion, Rs25 billion have to be recovered from withholding agents who have collected it from the end consumers but failed to pay to the government. He said tax authorities would withdraw the FIRs lodged against people involved in illegal input adjustment provided they pay the amount due.
In reply to a question about achieving revenue collection target for the current fiscal year, Hafeez said he was upbeat about revenue collection target. The FBR Chairman said he would prefer to resign than achieve revenue collection target by withholding refunds. Another official said Rs 1,952 billion would also include the amount collected by Sindh Revenue Board (SRB) on account of sales tax.