Islamabad(Business Reporter)-Federal Finance Minister Muhammad Aurangzeb announced that all provinces have signed the new National Finance Commission (NFC) Award, paving the way for a uniform agricultural income tax across Pakistan.
In an interview on PVT he said that the International Monetary Fund programme would help maintain economic stability in the country.
He noted that the Pakistani rupee has stabilised and foreign exchange reserves, which were previously enough for one month, have increased to cover two months of imports. Moreover, he said the policy rate has decreased.
In the show, which was aired on Tuesday, Aurangzeb said that the agreement for new NFC Award were made possible with “significant cooperation from Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur, who was the first to sign it.”
Following this, he stated that all provinces expressed their consent to implement agricultural income tax.
– Uniform agricultural income tax to be implemented nationwide
– Provinces to increase revenue through contributions to Public Sector Development Programme projects
– Support prices for wheat and sugarcane to be phased out
– Taxes to be imposed on real estate and retail trade
– Non-filers barred from purchasing vehicles/property and opening bank accounts
– No mini-budget expected
The government has decided to enforce a uniform agricultural income tax across the country, allowing provinces to increase their revenue, with some projects under the Public Sector Development Programme being supported by provincial contributions.
Aurangzeb noted that certain expenses would be transferred to the provinces under the financial agreements and the support prices for wheat and sugarcane would be gradually phased out. “Taxes will also be imposed on real estate and retail trade.”
He warned that the government has established a policy that prohibits non-filers from purchasing vehicles or property and non-filers would also be unable to open bank accounts.
The finance minister expressed optimism that, as a result of economic reforms and efforts, the credit policy rate would decrease further. He mentioned the possibility of receiving an extra $1 billion in climate funds from the IMF.
At one point, Aurangzeb said that there would be no mini-budget in the country.
