KARACHI (APP) Federal Finance Minister Dr Abdul Hafeez Sheikh on Saturday said tax system will be further simplified to reduce corruption in the country. He was speaking at a seminar on Federal Tax Ombudsman (FTO) Citizen Report Card Study Launch, organised by Transparency International Pakistan (TIP) at a local hotel. From next year, there will be only two taxes, sales tax and income tax. This is our aim. This will reduce corruption and remove overlapping of taxes, he added. He said the government will go after those who are enjoying luxurious life, but not paying taxes and not fulfilling their national obligation. We will tax agriculture inputs, eliminate zero rating regime to remove exemptions. We have identified 700,000 such addresses, who live luxurious life, visit abroad twice a year and do not have tax IDs, he added. The minister said that 7000 to 8000 of them have already been issued notices and some 10,000 will be served notices. We will keep you informed about this campaign against tax evaders, he added. Dr Hafeez Sheikh that people are in a habit of not paying taxes and these people will be motivated to fulfil their national duty. He pointed out that work is being done to reduce the size of government as the country is many problems due to this. This will be done to save money, he said. Citing examples of early days of Pakistan, he said that Governor General of Pakistan Quaid-e-Azam Mohammad Ali Jinnah had only seven-member Cabinet including Prime Minister Liaqat Ali Khan. The Cabinet of first chief minister of Sindh Allah Bakhsh Soomro consisted of only three members, he added. The Finance Minister said that General Ayub Khan had only 11 federal secretaries to run the government while General Musharraf had only 18-member Cabinet. He said the government was strengthening the institutions with the objective to allow them to work independently. Under this transformation strategy, he said the professional people based on merit will be brought to these institutions to improve their working, he noted. Referring to reforms in tax system, he said that Rs40 billion was paid as refunds to various sectors under the new mechanism, without involving human interaction. Last year, Rs 14 billion were paid as refunds, he added. The minister said that more than 40,000 cheques were issued this year without any problem and bribe. Referring to a fraud involving Rs 7.5 billion in the FBR, he said that FIR was lodged and Rs 3 billion were recovered from these officials, giving a message that corruption would not be tolerated within FBR. Appreciating the efforts of TIP, he said that the government does not want to hide anything from public and was willing to sit with TIP, trade bodies and people to take decision how to collectively remove corruption from the country. He made it clear that top authorities and he himself do not interfere in the affairs of FBR. Let me also assure you that none of us influence any postings in the FBR, he added. Appreciating the efforts of FTO, the minister said that he will fully cooperate and support FTO. I want to show the solidarity with FTO, he added. He said that FTO has authority to take action. If they do not take action, then dont blame the government, he observed. In his speech, former finance minister Shaukat Tarin said that TIP plays an important role in checking corruption in the government and its departments which is the key impediment to economic development. Since TIP coming to Pakistan in 1993, they have exposed corruption within the government and its departments. FPCCI president Senator Ghulam Ali lauded the role of FTO, FBR and the Finance Minister in the payment of refunds to businessmen and said some 40,000 cheques were issued this year. He said that with the help of reforms, FBR has been changed and it is now a business friendly organisation. Federal Tax Ombudsman Dr Shoaib Suddle pointed out that the number of pending cases has been reduced significantly. He said that FTO has taken suo-moto action and selected 195,000 cases mainly involving maladministration. The payment of refunds has been exceeding Rs 7 billion, showing a rise of 32 times over last nine years. We have also introduced 3rd party audit system being conducted by TIP in this regard, he added. He pointed out that tax evasion was to the tune of Rs 700 to 800 billion. Former Chief Justice Federal Shariat Court Justice (R) Haziq ul Khairi said powers are there with the institutions to take action against corruption. They need to exercise those powers, he noted. Former Speaker National Assembly Engineer Ellahi Bukhsh Soomro, Chairman TIP Syed Adil Gilani and former president Tax Bar Association Adul Qadir Memon appreciated the working of FTO.