Islamabad: Adviser to the Prime Minister on Finance, Dr. Abdul Hafeez Shaikh announced that the government of Pakistan decides not to introduce taxes in the budget of 2020.
While talking to a media channel Hafeez said,
“In the wake of Coronavirus outbreak, the government decides to introduce a tax-free budget for the fiscal year 2020-21.”
Moreover, he said in this crucial time it is more important to facilitate the industry to prevent economic crisis rather than focus on increasing taxes.
Hafeez said that the IMF has predicted that the global GDP will decrease by at least 3%, so the demand for exports will decrease.
By talking about the country’s deficit before the outbreak he said “The government was doing well before the virus outbreak. The deficit was 7% but now it moves to 9% but there are still 2 months left in this fiscal year and the government is trying is best to keep it below 9%.”
However, the main objective of the government is to provide relief to the people in the next budget. Also, to reduce duties on many things in the next budget.
Further, the government would give a package in the next budget to those sectors which would increase economic activities and create employment opportunities. He stated the example by saying,144 billion had distributed among the needy through the Ehsas program.
Replying to the query about petroleum and oil price he said “Hedging oil prices in international in the next two to four weeks. About petrol, the government will try to maintain current prices.”
Dr. Hafeez Sheikh said that the Prime Minister had directed to take strict action against illegal cigarettes.
What are FBR reports saying?
According to the FBR, the estimated revenue loss will be 450 billion in the first half of the fiscal year. If partial lockdown will extend then the tax authority will observe another shortfall in revenue of Rs 350 billion.
Although the short portion of the loss can be covered in the second half. Still, Pakistan needs to seek a loan to overcome this shortfall.
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