ISLAMABAD – Pakistani government announced several tax reforms to fix Rs350billion economy, and now the country’s finance minister Muhammad Aurangzeb emphasised that the country cannot run on charity.
Sharing his views in Kamalia, the minister highlighted the entire economic system relies on taxes, and the GDP is dependent on tax revenue. Aurnahzeb said that sectors previously not paying taxes are being integrated into the tax system, with additional sectors also being brought under the tax net.
He further asserted that those evading taxes will now be required to pay, and reiterated that GDP is reliant on taxes and the government is making efforts to enhance the Federal Board of Revenue (FBR).
Minister then stressed need to balance the economy, noting that the current tax-to-GDP ratio of 9.5pc, which he termed low, pushing it to 13pc. He stated that institutions receiving provincial funds need to be separated from the federal system and announced that the tax on retailers will be implemented by July.
Aurangzeb also revealed that the Prime Minister has proposed privatizing Lahore Airport.
He pointed out that for the country to achieve economic relief, it is necessary to reduce the deficit and government burden. He noted that 31,000 to 32,000 retailers have been registered and that tax digitization has helped reduce corruption.
Steps are being taken to minimize institutional losses and address corruption wherever it occurs, he said. Finance Minister concluded by saying that he will present a report to the Prime Minister identifying which institutions should be closed down.
