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Govt planning to cut number of provincial taxes

RECORDER REPORT

LAHORE: The Punjab Minister for Finance and Industry, Shahid Kardar, has said that the government is planning to bring down the number of provincial taxes from 22 to seven by the next fiscal year.

He was addressing the "Businessmen Convention" arranged by the Pakistan Industrial Associations Front (PIAF) here on Friday evening. He said that the tax collecting structure was complicated and irrational and needed to be revamped. He announced that the octroi posts would not restored.

The finance minister said that agriculture income should be taxed. He said that stamp duty on LCs would be slashed during the current fiscal and would be completely abolished by July next.

He maintained that another problem being faced by Pakistan was the volume of government machinery.

He said that in Punjab alone, there were one million regular government employees, which he described as too big a size which needed to be reduced.

Citing an example, he said his portfolio includes the ministry of industries in which there were 4500 employees but it owned no industry.

He said that priorities of his government also included extending support to small industries, improving infrastructure in small cities such as Sialkot, which were making significant contributions to the export sector.

The minister appreciated the efforts of the former government for introduction of information technology in the province. He said that the present government would continue supporting this programme.

He said that the industrial and business community would be consulted in the formulation of policies. He said it would be ensured that the business community is consulted for formulation of policies.

He disclosed that he had directed the labour department that no official could go on inspection without a representative of the chamber.

Punjab Law Minister Dr. Khalid Ranjha, speaking on the occasion, said that the Supreme Court decision against interest was not a verdict but a thought. He said that now people having knowledge and wisdom should think of an alternative to this system and how to handle economic affairs in the future in light of this decision.

He said that the government was considering a proposal to set up separate benches in the Lahore High Court for commercial cases while timeframes should also be given for hearings and decisions for such case.

Earlier, PIAF Chairman Mian Shafqat, Khawaja Amjad Saeed, Engr. Iftikhar-ul-Hassan and others also spoke and highlighted the problems being faced by the economy as well as possible solutions.