Islamabad Pakistan Finance Minister Muhammad Aurangzeb on Sunday admitted that people were stressed due to new taxes imposed in the budget after his revenue measures were criticized by almost everyone.
His comments came as President Asif Ali Zardari gave his assent to the tax-laden Finance Bill 2024 on the recommendation of the Prime Minister under Article 75 of the Constitution. The bill would come into effect on July 1, according to a press release from the Secretariat of the Presidency.
On June 28, the National Assembly passed the budget as a bill with certain amendments, but left unchanged the gross revenue target estimated at Rs 17,815 billion, including Rs 12,970 billion in tax revenue and Rs 4,845 billion. rupees in non-interest income. -tax revenue.
At a press conference, Aurangzeb said he understood that the salaried class was experiencing financial pressures particularly due to new taxes. He promised to offer relief to salaried people once any financial respite is feasible.
"I completely understand the stress that people in different sectors are feeling about the additional taxes, I completely empathize and understand, but we have to work for it," he said.
He also opposed the "non-filers" category, expressing confidence that government initiatives will eventually make the category obsolete.
He said that the tax on retailers will start from July 1 and people are feeling pressured by the new taxes, but it is important to get rid of IMF programs in the future. He said that "as of yesterday, forty-two thousand retailers were registered" and added that if a company has losses, it will not pay taxes.
According to the minister, a consultation has been held with the IMF on the budget. "We cannot move forward without a new IMF program at this point and even the critics know this," he said.
Aurangzeb said the government was going to make a long-term program with the IMF and an agreement with the IMF was expected in July.
He said the government made a cut in Public Sector Development Program (PSDP) and would opt for Public Private Partnership instead of PSDP as is being done in Sindh province.
According to Aurangzeb, the construction sector also falls into the tax net.
The Minister of Finance stated that the country's economy was stabilizing and that the inflation rate had been reduced from 38 to 13 percent and that thanks to economic stability, the confidence of foreign investors was being restored. He said microstability is the biggest challenge right now.
He said the government was focusing on bringing the tax to GDP ratio to 13 per cent in the next three years and carrying out reforms in the power sector and also plugging theft and leakages in the system.
“The work we have to do is how to stop leaks, corruption and theft, and concrete steps are being taken in this regard through digitization of the Federal Bureau of Revenue (FBR). The objective is that the fewer people involved in the process, the less corruption there will be,” he said, adding that currently both FBR officials and taxpayers are involved in the theft.
He said Pakistan's foreign exchange reserves were $9 billion. He said the World Bank has approved one billion rupees for the Dasu hydropower project and another $400 million from the IFC for Pakistan Telecommunication Corporation Limited.
The federal minister claimed that ministers have refused to take salaries while "we ourselves pay our utility bills."
His comments came as President Asif Ali Zardari gave his assent to the tax-laden Finance Bill 2024 on the recommendation of the Prime Minister under Article 75 of the Constitution. The bill would come into effect on July 1, according to a press release from the Secretariat of the Presidency.
On June 28, the National Assembly passed the budget as a bill with certain amendments, but left unchanged the gross revenue target estimated at Rs 17,815 billion, including Rs 12,970 billion in tax revenue and Rs 4,845 billion. rupees in non-interest income. -tax revenue.
At a press conference, Aurangzeb said he understood that the salaried class was experiencing financial pressures particularly due to new taxes. He promised to offer relief to salaried people once any financial respite is feasible.
"I completely understand the stress that people in different sectors are feeling about the additional taxes, I completely empathize and understand, but we have to work for it," he said.
He also opposed the "non-filers" category, expressing confidence that government initiatives will eventually make the category obsolete.
He said that the tax on retailers will start from July 1 and people are feeling pressured by the new taxes, but it is important to get rid of IMF programs in the future. He said that "as of yesterday, forty-two thousand retailers were registered" and added that if a company has losses, it will not pay taxes.
According to the minister, a consultation has been held with the IMF on the budget. "We cannot move forward without a new IMF program at this point and even the critics know this," he said.
Aurangzeb said the government was going to make a long-term program with the IMF and an agreement with the IMF was expected in July.
He said the government made a cut in Public Sector Development Program (PSDP) and would opt for Public Private Partnership instead of PSDP as is being done in Sindh province.
According to Aurangzeb, the construction sector also falls into the tax net.
The Minister of Finance stated that the country's economy was stabilizing and that the inflation rate had been reduced from 38 to 13 percent and that thanks to economic stability, the confidence of foreign investors was being restored. He said microstability is the biggest challenge right now.
He said the government was focusing on bringing the tax to GDP ratio to 13 per cent in the next three years and carrying out reforms in the power sector and also plugging theft and leakages in the system.
“The work we have to do is how to stop leaks, corruption and theft, and concrete steps are being taken in this regard through digitization of the Federal Bureau of Revenue (FBR). The objective is that the fewer people involved in the process, the less corruption there will be,” he said, adding that currently both FBR officials and taxpayers are involved in the theft.
He said Pakistan's foreign exchange reserves were $9 billion. He said the World Bank has approved one billion rupees for the Dasu hydropower project and another $400 million from the IFC for Pakistan Telecommunication Corporation Limited.
The federal minister claimed that ministers have refused to take salaries while "we ourselves pay our utility bills."
