New tax to be levied in current fiscal year, upcoming budget: Hina Khar

Saturday November 15, 2008 (0014 PST)

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ISLAMABAD: Minister of state for finance and economic affairs Hina Rabbani Khar has said no new tax will be levied in the current financial year and in new budget adding no plan is under consideration to bring any new department under tax net.

Hina Rabbani Khar said this while addressing opening session of consultative workshop with reference to government draft strategy on poverty alleviation here Friday.

She told tax targets in upcoming budget and tax regime would be reviewed saying government had however no intention to impose new tax or to bring any new department under tax net in the ongoing financial year or next budget.

She held the poor segments of society were being adversely affected by inflation; therefore, central bank had increased discount rate. Government was taking measures for the betterment of those spending their lives below poverty line, she added.

Poverty alleviation strategy PRSP-2 was very vital step under which growth rate would be increased by 5.5 percent, investment would be enhanced from 19 percent to 23.8 percent, inflation would be reduced from 23 percent to 7 percent, fiscal deficit from 4.2 percent to 2.9 percent, current deficit would be brought down from 6.5 percent to 4.6 percent and trade deficit from -8 percent to -7.1 percent, she underlined.

Government was launching different programs in addition to Benazir Income Support program for the uplift of poor people. Several measures would be taken for growth in industrial and agriculture production, she added.

Country was facing acute energy shortage and it was required to be addressed on emergency basis, she cautioned. 5500 megawatt electricity would be further generated with the construction of new dams by 2018, she hinted.

One million new houses would be constructed for the poor people and low income government employees, she pointed out.

Private sector would have to play its role for poverty reduction and economic development, she stressed. Government was endeavoring to complete various projects under public-private partnership, she told.

End.