ISLAMABAD, Dec 26 (NNI): Federal Minister for Finance Muhammad Aurangzeb said on Thursday that a common man should not be burdened with taxes.
Addressing a press conference in Islamabad, flanked by State Minister for Finance and Revenue Ali Pervaiz Malik and Information Minister Attaullah Tarar and Federal Bureau of Revenue (FBR) Chairman Rashid Mahmood Langrial, the Finance Minister said that taxation reforms have a key role in fiscal stability.
Aurangzeb said that a taxpayer’s expenditures should be compatible with his income. “We will take the tax-to-GDP ratio to 13 percent in the next three years,” he added. He further said that the government was committed to meeting the revenue collection target and was also taking steps to bring down inflation.
The Finance Minister went on to say that tax reforms played an important role in the country’s economy. He said that the Tax Amendment Bill had been tabled in the parliament.
Muhammad Aurangzeb said digitalization of FBR is aimed at enhancing transparency. He said that approval of design phase of digitalization was given by Prime Minister Shehbaz Sharif in September this year and now we are in execution phase of this process.
The minister informed that the FBR planned to limit human intervention in tax collection through the use of technology. “This will help us deal with the issues of harassment and corruption taxpayers have to face at the hands of the bureau officials,” he hoped.
He said that the government was examining the value chain of sugar, beverages and cement sectors. He claimed that compared with the last year, tax collection had increased this year. “However this year, the FBR is still to meet its tax collection target.”
Aurangzeb expressed the resolve that Pakistan would fully implement the IMF’s programme.
Speaking on the occasion, FBR Chairman Rashid Mahmood Langrial said the FBR’s digitalization was a basic point. “We focus on those five per cent people who are most rich and affluent.”
The FBR chairman informed that of 169,000 wealthy people who had been issued notices, 38,000 had filed their tax returns. “We are monitoring their data,” he said, and added, “These people have paid over Rs370 million in tax.”
Langrial went on to say that production in the sugar industry was being monitored. “There are instances in which action has been taken against the sugar mills’ owners.”
Langrial said that new tools had been introduced in the tax system. “Everybody will have to pay the taxes,” he said, adding, “The FBR is making efforts to make sure that more and more people pay their taxes.”
Minister of State for Finance, Revenue, and Power Ali Pervaiz Malik said that inflation taxed a common man’s purse the most. “If the government wants to overcome inflation, then it will have to overcome deficits,” the minister emphasized.
Ali Pervaiz Malik said that already inflation in the country had dropped from 40 per cent to five per cent. “There is a need to enhance the country’s revenue,” he asserted.
Speaking on the occasion, Minister for Information and Broadcasting Attaullah Tarar said Pakistan is fully complying with the requirements of international regulations. He said there is nothing in Pakistan’s judicial system which may be contrary to international covenants.
Attaullah Tarar said right to fair trial has been fully ensured in Pakistan and is clearly enunciated in the Constitution. He said there is no doubt on our compliance with international covenants and with the due process of law. NNI
