ISLAMABAD: The finance ministry said on Monday that there will be no increase in tax rate in the next budget, denying earlier media reports that the federal minister for finance Ishaq Dar has announced to increase the taxes.
In a statement, a spokesman of the finance ministry said that the federal government will prefer to increase revenues and expand the tax network in order to increase its income.
The spokesman said that the government aims to invest in human resource development. He said that the tax collection received an increase of 17 percent during the first nine months of this financial year.
Earlier, according to media reports, the finance minister announced to increase the taxes immediately after having successfully negotiated fresh loans from the International Monetary Fund (IMF) and the World Bank in Washington, adding that if taxes are not raised more loans will have to be taken.
The minister was addressing a press conference on Monday at the Pakistani embassy in the United States following his four-day US tour.
Dar said that the loans have to be re-paid and, as such, there was no option but to increase the taxes.
In addition, he said that revisiting defence budget was not possible, while the salaries and pensions of the government employees were already quite low and leave no room for any cut. Therefore, he said, the only option left for the government was to increase the taxes.
