ISLAMABAD: The Finance Ministry has rebuffed reports about increase in tax rate in the next budget, saying that the government will prefer increasing revenues by broaden tax base.
In statement issued here, a spokesman for the Finance Ministry said the government aimed at investing in human resource development. The spokesman claimed the tax collection had increased by 17 percent during the first nine months of the current financial year.
Earlier, Finance Minister Ishaq Dar was quoted by media as saying in Washington that the government will have to take more loans if the taxes were not raised.
Addressing a press conference at Pakistani Embassy in the US, the Finance Minister said that financial resources were needed for the salaries of government functionaries and other expenses. He asserted that there was no option other than to increase tax. Dar said the forex reserves rose to $10 billion till March 31, expecting that they would exceed to $15 billion by the next fiscal year. He said the government was brining economic reforms to ensure good governance.
