ISLAMABAD: Federal Government has decided to increase taxes on real estate business and stock market transactions in the next budget. Meanwhile, Widening of tax net by increasing the number of taxpayers through law making is under consideration in addition to introducing new tax slabs for salaried class.
Sources in the finance ministry have said that no decision has been made in regard to reduction in the ratio of sales tax. Government has been mulling over increase in taxes on real estate and stock market sector in the next budget due to substantial development in the two domains. However, it is yet to be determined as to what shall be the proportion of such taxation.
According to sources, Chambers of Commerce and Industries and trade associations from all over the country had insisted on levying taxes on the said sectors in their proposals for the Budget 2014-15. They added that the government was already in favour of such proposals.
Sources added that in addition to the federal government the provincial governments including Punjab Government are also giving thoughts to proposals of raising land taxes. It is quite possible to be implemented in the upcoming budget, the sources added.
Federal Government has also decided to raise 15 to 20 per cent salaries of government servants to provide ad hoc relief. However, no lift in their allowances is on cards. Meanwhile, up to 10 per cent raise in pensions for retired government servants is expected.
The decision to provide ad hoc relief was taken only after calls for protests and demonstrations by the government servant organisations. Finance ministry maintained that due to stability in the value of US dollar and Rupee’s appreciation against it, inflation has been contained.
