FINANCE Minister Muhammad Aurangzeb has, once again, reiterated firm resolve of the government to proceed ahead with multi-dimensional reforms aimed at putting the economy back on track and enabling the country to move towards self-reliance. Addressing a news conference in Islamabad on Sunday, he said that reforms are being introduced to the Federal Board of Revenue (FBR) as part of the government’s efforts to broaden the tax net by bringing 4.9 million non-filers into tax net, adding that Prime Minister Shehbaz Sharif is chairing weekly meetings in this regard. He also stressed that there are 4.9 million non-filers, whose complete lifestyle data is available with the government. The Minister emphasized that without including the untaxed and under-taxed community into the tax regime, the government cannot achieve the certainty and ease of collection that is vital for economic stability.
The remarks made by the Finance Minister conveyed a clear message to all concerned that the government was not only determined to implement its reforms agenda but is also sensitive to the woes and sufferings of the people. In this regard, he stressed the need for urgent structural reforms in the energy sector to address issues related to independent power producers (IPPs), inflated electricity bills and other irregularities that burden the national exchequer and consumers. No one is asking for unilateral amendments to the agreements concluded with the IPPs but there is genuine demand for revision of the clause regarding capacity payments which has put enormous burden on the national exchequer that is passed on to the honest consumers. At a time when the common man is robbed of his entire income in the shape of electricity bills and cost of doing business has increased significantly due to unaffordable energy costs, the government cannot take refuge behind sovereign guarantees and instead engage IPPs in talks for revision of the suicidal clause. The Minister maintained that short-term and knee-jerk reactions will not lead to a comprehensive structural transformation of the country’s various sectors of economy. It is not a knee-jerk reaction but a considered view of the experts and bitter experience of consumers that the capacity payments, rampant theft and line losses caused by organizational inefficiencies are mainly responsible for sufferings of the masses vis-à-vis power sector and this exploitation should come to a halt. We agree with the Minister that more needs to be done to address the woes of the consumers besides the industrial package that the government has already announced and provision of subsidy to those consuming up to 200 units per month. His statement that the government was making every effort not to burden the low income segments of the society but this commitment has yet to materialize as the burden of all taxation measures ultimately falls on the common man and affects the vulnerable families badly. We have been hearing about the identification of 4.9 million non-filers that the government aims to bring into the tax net but they include powerful lobbies not ready to pay their due taxes despite earning handsomely. Some of the retailers having their businesses at attractive locations are minting money for years but have successfully avoided all past campaigns to come into the tax net. Similarly, the majority of jewellers, doctors, engineers, technicians, laboratories, workshops and even lawyers are either simply not filers or do not pay taxes commensurate with their income. There are welcome moves towards imposition of agriculture tax and according to the Finance Minister all the chief ministers have agreed to do legislation for the purpose. This should not be a symbolic move but a well thought out plan to generate substantial revenue as per true incomes of farmers. Incidentally, the Telecom Operators’ Association (TOA) has sought active government intervention to expedite the transition towards a cashless economy and match the strides made by neighbours India and China. It has proposed a number of measures for the purpose which needs to be considered seriously by the authorities concerned as they also have the potential to promote the cherished objective of documentation of the economy.
