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Govt intends

to bring down

IT rate after

GST: Shahab

AMANULLAH BASHAR

KARACHI: The government intends to bring down the rate of income tax, following the introduction of general sales tax across the board.

This was indicated by Makhdoom Shahabuddin, Minister of State for Finance, while talking to newsmen here on Wednesday.

When his attention was drawn towards the hue and cry from various trade sectors over the recent levy of general sales on various items, which they apprehend may cause price escalation, the minister firmly brushed aside the fears about substantial price increase and said it would hardly be by 1.5 percent.

Replying to another query about reports that the budget would be tougher this year, the minister said that it would be tough only for those sectors which were unduly pampered in the past, and would be normal otherwise.

The federal budget, he said, would be announced in the first week of June.

Replying to a question Makhdoom Shahabuddin said that in the present economic scenario special industrial zones (SIZs) did not go well as they created, unfair competition. The government was determined, he added, to provide all basic infrastructures to the industries on a short notice and the availability of power, best metalled roads, water and other facilities were also a form oŸ incentives.

When a reporter asked about the IMF guidelines for budget making, the minister said that although "we borrow from the IMF the question of taking dictation does not arise from any quarter".

He was critical of the Karachi press that it did not highlight the government's positive efforts for restoring the peace in the city. It was the Benazir government, he said, which improved the city situation well over 75 percent and expressed the hope that the law and order would be brought under control in the near future.