Federal Finance Minister Muhammad Aurangzeb announced that the government aims to raise Pakistan’s tax-to-GDP ratio from the current 9-10% to 13% over the next three years. He emphasized that tax reforms are crucial to the government’s economic strategy and for ensuring economic stability by aligning taxpayers’ income and expenditure.
At a press conference in Islamabad with Minister of State Ali Pervez and Federal Minister for Information Attaullah Tarar, Aurangzeb shared that a tax amendment bill has been presented in Parliament to reduce human involvement in the Federal Board of Revenue (FBR) through technology, which will help combat corruption and harassment. He also discussed ongoing structural reforms, aiming to surpass a 13.5% tax-to-GDP ratio within three years.
The Finance Minister highlighted the importance of digitalization and reducing human intervention for improved tax compliance. He assured that the government would focus on increasing revenue while minimizing the burden on honest taxpayers. The government is reviewing key sectors like sugar, beverages, and cement to address tax gaps.
Minister of State Ali Pervez Malik addressed inflation as the largest tax burden on citizens, noting that inflation has dropped from 30-40% to around 5%, benefiting the public. He also emphasized a fair distribution of the tax burden across sectors and mentioned that 190,000 individuals have been identified for inclusion in the tax net. The government aims for wealthier individuals to contribute their fair share, with improved data collection and FBR capacity-building efforts to enhance tax compliance.
