28/11/2008
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Farm levies after 2 years, says Tareen
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Khudayar Mohla
ISLAMABAD: Advisor to Prime Minister on Finance Shaukat Tareen pledged that no levy on the agriculture sector would be imposed during the IMF facility period of 23 months in the country.
He was talking to journalists after inaugurating first meeting of the Census Advisory Committee on 6th population and housing census, organised by Population Census Organisation of the Statistics Division here on Thursday.
The advisor added that the government would strengthen the agriculture sector owing to its contribution towards country's economy.
Tareen reiterated that present government is determined to enhance tax to GDP ratio to 15 per cent during next 5 to 7 years for which tax net would be expanded.
He said the government would increase tax rates by 4 per cent on national income during the next 5 years but categorically said that there would be no tax on agriculture sector for next two years.
The advisor said in order to restructure economy under the 9-point agenda a political will must be exhibited by taking some 'hard' decisions.
Replying to a question Tareen said, "During the current fiscal year, interest rate has been increased by 5 per cent which would reduce the inflation rate.
In the wake of these measures inflation will take a dent soon and further monetary policy tightening would not be needed."He said the government has reduced borrowing from the central bank. Tareen also told media that a total of Rs400 billion of different departments would be utilised first before reducing the development expenditure.
When asked about high markup rate on IMF loan, the advisor said, "We were passing through a war-like economic situation so comparatively it was a lower on a substantial amount." He said that Friends of Pakistan (FOP) have assured Pakistan of their full support to project financing for the country.
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