Karachi : Finance minister , Mohammad Aurangzeb , has said Pakistan is taking massive measures for adding numbers of new tax payers by broadening the tax net.
He was addressing a crowded press conference at Overseas Investors Chambers of Commerce and Industry (OICCI)here . The Finance minister said the government is working closely with the provinces to make laws to bring agriculture sector into tax net.
He shared with the media that the Punjab has already passed a bill in this regard and KPK and Balochistan are next to pass the said bills from their respective assemblies. He noted that the federal government was negotiating this issue with the government of Sindh.
Taxing agriculture is long outstanding demand of the international donors and financial institutions . In the past , none of the government could do the legal work to being agriculture into tax as it could offend landlords whose majority comes in the parliament after every election. Now when Pakistan is in a 3-year bailout package with IMF, the fund is pressing Pakistan to pass the law to tax agriculture to get the second installment of the bailout package .
IMF has set a deadline of Dec 31 next for Pakistan to get passed the bill to tax agriculture sector.
Finance minister , Mohammad Aurangzeb, made it crystal clear for every segment of the society that Pakistan can not afford to let whole sellers, retailers and agriculture enjoy holidays on tax payments .
He also reiterated that the government is making massive reforms in the tax collection system to avoid leakages of the revenue. He said the entire working of FBR is being digitised to plug in all types of corruption and leakages in the tax system.
Mohammad Aurangzeb made an offer to agriculture , real estate and retailers plus whole sellers to pay taxes on their income and its percentage may be 5 % . He also assured to the journalists that ECC , the highest forum to take economic decisions , is very serious on seeing the benefits of lower prices to be passed on to the people of Pakistan .
He warned that if the price control committees can not do their job promptly , they will be taken to task. The Finance minister said the State Bank of Pakistan (SBP) is independent to take a decision on the policy rate. However, he expected some adjustment in the policy rate next week.
Traders and industrialists are demanding major cut in the policy rate. The Finance minister also shared with the media that as a result of stringent measures , smuggling of sugar , petroleum products etc has come down considerably. He said Foreign Direct Investment (FDI) is coming into Pakistan.
The Finance ministry issued the following note to the media on Finance minister Mohammad Aurangzeb’s talk to the journalists in Karachi.
“Federal Minister for Finance and Revenue Senator Muhammad Ayrangzeb today visited the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi earlier today. During the visit, the Minister addressed the media, highlighting the significance of staying on the course to marcoeconomic reforms, enabling the private sector to be the engine of growth and ensuring a favourable policy framework and policy continuity to spur an import-led growth”.
