Tax rate to be decreased after rise in POL prices: Dar

ISLAMABAD: Federal Finance Minister Ishaq Dar has said that the rate of taxes will be reduced after an increase in the price of petrol.
On the other hand, the opposition has rejected the explanation given by Federal Finance Minister Senator Ishaq Dar and staged a walkout.He further said that sovereignty of parliament was not undermined by increasing on petroleum products through government’s decisions.
Giving statement on floor of the National Assembly, the finance minister said that like the past, the Constitution empowered the Executive to increase different taxes including GST and regulatory duties saying sovereignty of the Parliament was not undermined.
The minister said that increase in GST on petroleum products and changes in other taxes were imperative to meet various needs including release of funds to the provinces from devisable pool. “We cannot ignore expenditures in the wake of Operation Zarb-e-Azb, debt-servicing and payment of salaries,” Senator Dar said.
Giving another justification behind imposition of additional taxes, he said that such measures were taken to reduce shortfall in revenue collection this year. “A shortfall of Rs196 billion in revenue-collection is expected this fiscal year. We are trying to reduce it by Rs46 billion by imposing additional taxes,” Senator Ishaq Dar said.
He said the government had reduced the revenue collection target by Rs119 billion from Rs2,810 billion to Rs2,691 billion for the current fiscal year.Finance Minister Dar said that there would be no National Tax Number (NTN) for individual tax-filers from 1st of July this year and instead, CNIC number would be used. “The NTN will be necessary only for companies and associations,” he said.
Dar said the government had so far provided relief to the people on petroleum products by 37.68 percent since August 31 last year adding that petrol was available in the country at lowest price in South Asia.
Later, Opposition Leader in the

National Assembly, Syed Khursheed Shah said the opposition was not involved in point scoring on any issue saying the parliament was a sovereign institution and the opposition wanted to discuss all the public-oriented issues in the House. “We should not repeat mistakes or wrong traditions of the past,” he said.
He said that the government had shifted the financial burden to the shoulders of the poor people by imposing taxes and regulatory duty.He said the government should take the House into confidence before levying new taxes saying the regulatory duty had not been imposed for narrowing down budget deficit.
Syed Naveed Qamar of Pakistan People’s Party (PPP) alleged that the government had no respect for the sovereignty of the Parliament as it was imposing taxes without taking the parliament into confidence.
He urged the government to ensure trickledown effect of reduction in oil prices to the people. He rejected all the increases in taxes by the government and demanded their immediate withdrawal.
Abdul Rashid Godial of Muttahida Qaumi Movement (MQM) was of the view that GST and regulatory duties are regressive taxes. He said tax collection system should be improved instead of imposing more taxes.
Sahibzada Tariqullah of Jamaat-e-Islami said reduction in the prices of edible items and other commodities should be ensured as a result of price reduction of petroleum products.
Sheikh Rasheed Ahmed said that reduction in oil prices in the international market was a blessing and its benefits should be passed onto common man. To end of the proceedings, the opposition leader demanded of the finance minister to announce withdrawal of at least latest 5 percent increase in GST on petroleum.Receiving no response from the minister, Khursheed Shah announced to stage walkout from the House.
Meanwhile, the Parliamentary Secretary for Finance Rana Muhammad Afzal Khan told the House that considerable reduction had been recorded in smuggling as a result of steps taken by the government to control smuggling at Afghan border through Afghan Transit Trade Route.
During the question hour, he said that the Frontier Constabulary deployed at the borders had given anti-smuggling powers.He said a comprehensive anti-smuggling strategy had been chalked out for available resources and manpower had been pooled for optimum use.
He said tracking devices were installed on all carriers and containers carrying Afghan Transit Cargo to ensure that no en-route pilferage took place.To a question, the parliamentary secretary told the House that the government had given unparalleled relief to the people by reducing prices of petroleum products.
He pointed out that the government had increased GST on petroleum products to reduce the revenue shortfall.He said Rs80 billion revenue shortfall was expected only due to reduction in oil prices in global market and the government would be able to recover Rs40 billion by increasing GST on petroleum products.
Rana Muhammad Afzal told the House that the total amount of foreign aid received for Temporarily Displaced Persons (TDPs) in cash and kind was about $107 million. He said this financial assistance was being utilised for various activities relating to relief and rehabilitation of displaced persons.