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" REVENUE GENERATAION THROUGH TAX RATES BUDGET 2011-12 REVENUE GENERATAION THROUGH TAX RATES BUDGET 2011-12   By   M. Iqbal Patel, Chartered Accountant, Karachi   The country is passing through critical economic situation. The government's main object, therefore, in framing the budget proposals should be to pull out the country from the economic crisis. But from the press reports it transpires that there appear no deviation from the past practices to make plus/minus in the tax rates in a budget for the ensuing financial year, 2011-12...   There are reports that the government is planning to increase the rate of withholding tax on cash withdrawal from the banks from 0.3% to 0.5% in the upcoming budget 2011-12 Similarly there is likelihood to enhance the income tax rates on banking and insurance companies from 35% to 37% or 40%.   It is also reported that the sales tax rate would remain at 17% and will not be reduced to 15%. Although the 17% sales tax rate was imposed in the budget 2010-11 for the period of three months from July 2010 to September 2010. It was committed to brought down it to 15 % from October 2010 and onward. But the Finance Minister did not meet this commitment and 17% rate is still continued. It is announced recently that the proposals for the budget 2011-12 will maintain the sales tax rate at 17% in the next fiscal year too.   The finance managers of the country adopt short cuts in framing a budget which is an important document, sets the strategies, policies and direction of the government. But the finance managers, play with the existing tax rates, making plus and minus here and there. Though present economic critical situation demands innovative measures and more complex techniques be applied with a view to enhance the…