ISLAMABAD: Three provinces have been slow to enact new agriculture income tax regulations, which has angered Finance Minister Muhammad Aurangzeb. One of the terms of the 37-month, $7 billion Extended Fund Facility that was agreed upon with the International Monetary Fund is this new legislation.
Following an 18-month hiatus, the National Tax Council (NTC) met on Wednesday, during which the finance minister examined a number of tax proposals. In order to evaluate the status of various tax programs, the minister also requested that the finance ministry have NTC meetings every three months.
The finance minister was unhappy with the slow rate at which Sindh, Khyber Pakhtunkhwa, and Balochistan were enacting agricultural income tax rules, according to an official source who was present at the meeting. The meeting was informed that although the measure had been authorized by the KP administration, it had not yet been presented to the legislature.
Nevertheless, there was no information at the conference about whether the agri-income tax law had been approved by the governments of Sindh or Balochistan. The finance minister has decided to bring up the matter with Sindh Chief Minister Murad Ali Shah due to the slow pace. The measure has been passed by the provincial assembly in only one province, Punjab.
The government won’t go back to directed financing to the housing sector, according to Aurangzeb.
Only taxpayers who have disclosed their agricultural incomes on their tax filings have given the Federal Board of Revenue (FBR) permission to share information. However, because current law preserves taxpayer confidentiality, the FBR is hesitant to provide more information with the provinces.
The NTC conference brought together important federal and provincial stakeholders to debate important issues pertaining to tax reforms and harmonization, according to an official notification released following the meeting.
The discussion focused on the necessity of realizing the maximum revenue potential from under-taxed sectors, especially real estate, property, and agricultural income, and was held in the framework of the newly agreed National Fiscal Pact between the federation and the provinces.
Fostering cooperation between federal and provincial authorities to improve tax systems, increase revenue collection, and improve compliance was the main goal of the conference agenda. Stronger information-sharing between FBR and provincial revenue authorities, the use of cutting-edge data analysis tools, and the adoption of digital solutions to expedite tax collection were the main topics of discussion.
In order to improve efficiency and transparency, it was also decided to move on with measures to harmonize the General Sales Tax (GST) throughout provinces and switch to a single tax platform. An agreed list of taxable services, a single site, and tax rate harmonization were also major topics of discussion.
Providing incentives for home loans
According to the APP, the finance minister stated that the government will not return to directed lending to the housing sector and called for incentives to be put in place to make bank-led financing more available to the general population.
“We will not return to directed lending, as it was a mistake. Speaking at the International Affordable, Green, and Resilient Housing Conference, the minister claimed that it causes distortions and has medium-term effects.
According to the APP, the finance minister stated that the government will not return to directed lending to the housing sector and called for incentives to be put in place to make bank-led financing more available to the general population.
“We will not return to directed lending, as it was a mistake. Speaking at the International Affordable, Green, and Resilient Housing Conference, the minister claimed that it causes distortions and has medium-term effects.
Instead, he said, the government will concentrate on developing incentives to encourage housing finance. People will have easier access to housing finance thanks to this strategy, which will incentivize banks and microfinance organizations to take the lead.
According to the minister, population growth and climate change are two existential issues that are connected to the nation’s housing industry. According to the minister, the population is rising at an alarming rate of 2.5 percent, which has far-reaching effects such as poverty, poor learning results, child stunting, and a high percentage of girls not attending school.
Boards of SOEs reorganized
A number of summaries, including the reconstitution of the boards of directors for the Printing Corporation of Pakistan (PCP), Pakistan Railways (PR), and Overseas Pakistanis Foundation (OPF), were authorized by the Cabinet Committee on State-Owned Enterprises (CCoSOEs), which was chaired by Mr. Aurangzeb.
