Govt looking at Rs1 trillion non-tax revenue in the coming year, says Hafeez Shaikh – Business

The Prime Minister of Finance's adviser, Hafeez Shaikh, said Sunday that the government expects to see "more than 1 billion rupees in non-tax revenue" next year.

"In the next year, we expect great progress when it comes to non-tax revenue: government profits through other means besides collecting taxes," said the financial advisor during a press conference in Islamabad.

Shaikh then proceeded to provide a break in how he had arrived at the figure.

He said the government had recently received a large injection: 70 billion rupees for the renewal of Jazz and Telenor cell licenses. "We expect to get Rs70bn more from both companies, and we also expect the equivalent of Rs70bn from Zong. So this will amount to Rs200bn."

Shaikh said that through the regasified liquefied natural gas (RLNG) plants, whose privatization is expected by December this year, revenues of Rs300bn are expected.

"If our exchange rate remains stable, we are seeing Rs400bn earned by the State Bank of Pakistan," he added.

"So, given all these expected developments, and along with privatization and other non-tax revenues, we are seeing more than one billion rupees in non-tax revenues next year," he explained.

He said that with this injection of funds, the government will be able to reduce its loans and work on public welfare projects.

Tax collection efforts

The financial advisor also talked about the government's tax collection efforts made so far.

"In Pakistan, the elite class is especially not very good at paying taxes. And we have tried to make this a very important pillar of government policy," he said.

He went on to say that in July and August of last year, the government collected Rs509bn in taxes, while in the same two months of this year, Rs580bn have been collected, which means an increase of 15pc has been observed.

Shaikh said that the number of taxpayers was previously 1,900,000 and is now 2,500,000 and that the government will continue to contribute more to the network, so tax collection remains a continuous practice.

Sales Tax Returns

He also spoke of the government fulfilling its promise of disbursement of export tax refunds to exporters.

"The last time I held a press conference, I promised that we would reimburse Rs22bn for sales taxes. Today I tell you that this promise has been fulfilled and that every RPO (refund payment order) has received its tax on sales. refund, "he said.

In addition, he assured that a new system has been established, due to which refunds will be granted completely and quickly.

"On the 16th of each month, when you enter your information, you will receive an instant refund […] and this came into effect from August 30. If you have any comments on this, we are open to questions, "he said, addressing the entrepreneurs.

Privatization

The financial advisor also said that the government has begun to focus on improving the performance of institutions that were not functioning properly and that have made decisions in this regard.

"Organizations that the public sector cannot manage will be delivered to the private sector in a transparent manner. Therefore, we have injected new energy into privatization. New companies have emerged and expressed interest in privatization and their ads have been placed. Our goal is to accelerate these developments to increase productivity.

"In addition, for state-owned companies that need to be renovated, an organization was activated & # 39; Sarmaya Pakistan & # 39; and 20 companies were selected for restructuring in an accelerated manner," he said.

Shaikh also said that electricity distribution companies where many problems have arisen while operating under the state will also be prepared for privatization.

"We are also thinking that large organizations such as the National Bank of Pakistan and the State Life Insurance, which can make some improvements, should be considered for the same."

Source: https://www.dawn.com/news/1505355/govt-looking-at-rs1-trillion-non-tax-revenue-in-the-coming-year-says-hafeez-shaikh

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