Finance Minister Muhammad Aurangzeb announced that China will support Pakistan in securing approval for the International Monetary Fund (IMF) agreement.
The statement was made during a press conference in Islamabad, highlighting ongoing efforts to improve the country’s economic situation.
FM Aurangzeb emphasised the need to provide facilities to the public if taxes are to be increased, pointing out that both the United States and China are vital partners for Pakistan.
He stated that efforts are being made to ease the tax burden on the lower-income population while simplifying the taxation process for traders.
FM Aurangzeb criticised tax defaulters for not being loyal to the nation, urging that tax payments are crucial for economic stability.
The finance minister noted that reforms in the Federal Board of Revenue (FBR) are discussed weekly, and provincial governments are encouraged to legislate taxes in the agricultural sector.
FM Aurangzeb highlighted the need to streamline government expenditures and discussed potential mergers of certain ministries.
He also mentioned detailed discussions with Chinese officials on energy, including the conversion of coal power plants to local coal and the issuance of Panda Bonds.
Chinese ministers praised Pakistan’s negotiations with the IMF and assured support for the agreement’s approval by the IMF board.
The finance minister stressed the importance of simplifying tax processes, comparing it to the straightforward tax systems in other countries, where annual forms provide clear tax details without the need for legal assistance.
Meanwhile, The Finance Minister said reforms are being done in the FBR and in this regard weekly meetings are held under the chair of Prime Minister Shehbaz Sharif. He said that putting less burden on lower income class is the government’s top priority.
He noted that strengthening the economy requires paying taxes and providing public services. The minister also mentioned that 4.9 million non-filers have been identified in the income tax system.
Mentioning the details of tax evasions and frauds, he said we have identified a tax potential worth 600 billion rupees that was not collected, out of which one billion rupees has been recovered so far. In customs, through misclassification, tax worth around 50 to 200 billion rupees has been identified.
He urged media to start a campaign against under tax and un taxed community. The Minister said the government is also working on the simplification of the tax processes to facilitate the business and salaried persons. Through this simplified process, they will be able to respond to our system in a very simple and easy manner without the involvement of any tax consultant.
Expressing gratitude to the Chief Ministers of all four provinces for supporting government’s tax reforms agenda, he expressed hope that they will introduce tax legislations for inclusion of Agricultural sector in the taxation regime.
