Islamabad, June 28, 2024 – Finance Minister Mohammad Aurangzeb emphasized the necessity of broadening Pakistan’s tax base by incorporating retailers and the real estate sector into the tax net.
Speaking on Friday, Aurangzeb underscored the government’s commitment to curbing tax evasion and enhancing revenue collection from these pivotal sectors.
Highlighting specific measures, Aurangzeb reaffirmed that certain essential sectors would continue to benefit from tax exemptions. Medical surgery equipment, educational materials including school books and printing supplies, as well as items from the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATAs), would remain exempt from taxes.
During a session in the National Assembly discussing the budget for 2024-25, Aurangzeb addressed concerns about tax exemptions, particularly regarding health standards. He stressed that while exemptions were crucial for health and education during challenging economic conditions, tax relief could not extend to packaged milk that did not meet required health standards.
Turning to broader economic strategies, the Finance Minister outlined efforts to rebalance tax burdens and provide relief across various sectors. Notably, tax exemptions were extended to sectors such as agriculture, fertilizers, and certain categories within the education sector to alleviate financial pressures.
Aurangzeb articulated ambitious fiscal goals, aiming to elevate Pakistan’s tax-to-Gross Domestic Product (GDP) ratio from its current 9.5% to 13%. He underscored that achieving this target was crucial for the country’s self-reliance and for progressing towards the conclusion of the International Monetary Fund (IMF) program.
In pursuit of these objectives, Aurangzeb emphasized the government’s commitment to modernizing and digitizing the Federal Board of Revenue (FBR) to streamline tax collection processes. He affirmed that the era of non-filers evading taxes would end, with every individual and entity expected to contribute their fair share to national revenue.
Acknowledging the importance of strategic sectors in Pakistan’s economic growth, Aurangzeb highlighted record allocations in the budget for 2024-25 aimed at bolstering Information Technology and Agriculture. These investments are intended to foster innovation, productivity, and sustainable development across these critical domains.
As Pakistan navigates economic challenges and strives for fiscal stability, Aurangzeb’s proposals and assurances signal a proactive approach to enhancing revenue streams while safeguarding essential sectors through targeted tax policies.