Islamabad, July 28, 2024 – Finance Minister Muhammad Aurangzeb expressed optimism that all provinces will legislate to bring agricultural income into the tax net.
During a press conference in Islamabad, Aurangzeb thanked the Chief Ministers of the four provinces for their support of the government’s tax reforms agenda and hoped they would introduce legislation to include the agricultural sector in the taxation regime.
Aurangzeb emphasized that without including the untaxed and under-taxed communities in the tax regime, achieving certainty and ease of collection is impossible, both of which are vital for economic stability. He stressed that the government is taking robust measures to improve the country’s economy, including significant reforms in the Federal Board of Revenue (FBR) to increase revenue collection.
Aurangzeb also discussed the ongoing weekly meetings chaired by Prime Minister Shehbaz Sharif, underscoring the government’s commitment to placing less financial burden on the lower-income class. He mentioned that facilitating the business community is a top priority, noting that claims worth 68 billion rupees have been refunded so far.
The Finance Minister highlighted that a centralized system will be used to send tax notices, while field formations will be authorized to collect taxes accordingly. He detailed the discovery of tax evasions and frauds, revealing a tax potential worth 600 billion rupees that had not been collected, out of which one billion rupees has been recovered so far. In customs, misclassification has been identified as a source of significant tax losses, estimated between 50 to 200 billion rupees.
Aurangzeb urged the media to launch a campaign against the under-taxed and untaxed community to support the government’s efforts in broadening the tax base. He also mentioned the government’s work on simplifying tax processes to facilitate business and salaried individuals. This simplified process will allow taxpayers to respond to the system in a straightforward manner without needing a tax consultant.
The Minister also stressed the importance of rightsizing the government, revealing that five ministries have been shortlisted for this process: Kashmir and Gilgit Baltistan, SAFRON, Industries and Production, IT and Telecom, and Health. He stated that Prime Minister Shehbaz Sharif would make the final decision regarding these changes.
Aurangzeb concluded by highlighting the importance of these measures in achieving economic stability and growth, ensuring that all sectors of the economy contribute fairly to the national exchequer. The implementation of these tax reforms, particularly in agriculture, is seen as a crucial step towards achieving long-term economic stability and growth for Pakistan.