ON a positive note for agricultural and construction sectors, Finance Minister Ishaq Dar while taking the floor of the National Assembly on Friday made it clear there will be no additional taxes on these sectors. The decision came in the aftermath of a three billion dollar standby arrangement reached with the IMF the previous month.
The Finance Minister’s statement holds great importance for the country’s economic growth and development, as these sectors play a pivotal role in generating employment, contributing to GDP and driving overall economic progress. As regards to agriculture, approximately twenty four percent of the GDP comes from the agricultural sector, and it employs nearly 40% of the total labour force. Agriculture’s role in providing food security cannot be overstated. With a rapidly growing population, Pakistan must ensure sufficient food production to meet the demands of its citizens. By not levying new taxes, the government ensures that farmers’ income remains relatively stable, thus fostering agricultural growth. Similarly, the construction industry is a major employer in Pakistan, creating job opportunities for millions of workers, both skilled and unskilled. By exempting it from new taxes, the government ensures the sector’s continued growth, thereby providing a stable source of employment for the growing labour force, especially in urban areas. A thriving construction sector contributes to infrastructure development which is crucial for economic progress. This will really enable construction companies to invest in new projects, ranging from roads and bridges to housing developments and commercial buildings. These projects boost economic activity, attract investment and create a positive business environment. Hence, we really appreciate the government’s announcement as it will have an overall positive impact but at the same time it must be ensured that there is no tax evasion in any sector and such loopholes need to be plugged through the use of best international practices, digitalization and reforms in the FBR. Tackling tax evasion is also important to reduce the burden on honest taxpayers. If we really want to stand on our own feet, we have to broaden the tax net. Raising public awareness about the importance of paying taxes and the consequences of tax evasion can foster a culture of compliance.
