US aid not to stop: Hafeez

Federal Minister for Finance, Dr.Abdul Hafeez Sheikh chairs a ECC meeting in Islamabad on Saturday, May 07, 2011. - Online File Photo

ISLAMABAD: Finance Minister Dr Hafeez Shaikh has dispelled an impression that the United States will suspend economic assistance in the wake of Osama bin Laden`s killing.

Talking to newsmen after a meeting of the Economic Advisory Council here on Saturday, he said: “There is no threat to the assistance because economic relations with the US are at government to government level.”
He said neither the tax rate would be increased nor any new tax would be introduced in the next budget. The tax base would be broadened by netting non-filers and the taxation system would be made more equitable, he added.
The minister said one per cent turnover tax would be replaced by gross asset tax and the GAT would be adjusted against the income tax deposited by an individual.
He said that no decision had been taken about a raise in the salary of government employees and the issue would be decided by the cabinet.
Meanwhile, convenor of the EAC Dr Hafiz A. Pasha said that there were legal issues involved about the imposition of the GAT after the passage of the 18th Amendment and legal experts were being consulted to seek their opinion whether the federal government could impose a tax on immovable property.
He stressed the need for broadening the tax net, ensuring equity in tax system, overcoming energy shortages, capital markets and banking sector reforms and undertaking micro-economic reforms to improve competitiveness of industry and agriculture.