Islamabad:
Finance Minister Muhammad Aurangzeb expressed hope that the International Monetary Fund (IMF) program would continue, but he dodged the question of whether the government would bring a new budget or renegotiate the tax target for the year. Due to which there is shortfall.
Broadening the tax base. Its challenges suddenly escalated as the Federal Board of Revenue barely achieved 50 percent of the monthly tax target of Rs 1.37 trillion as of Thursday.
There are 5 days left in the end of the month and FBR needs another trillion rupees to meet the IMF condition.
The government also hinted at a compromise with commercial banks on the issue of 15 percent additional advance-to-deposit tax.
It acknowledged that non-filers would still be legally allowed to engage in transactions other than the purchase of real estate, cars and shares.
When the IMF mission comes, we will talk to them in good faith as we are trying our best to achieve the target. He said that under a condition of IMF, FBR needs to collect Rs 6.009 trillion during July-December of the current financial year.
The finance minister said that the target of 40 percent growth this year was ambitious compared to the 29 percent increase in tax collection in the previous fiscal year.
He said that certain tax policy and economic assumptions could not work as a result of which the FBR fell behind its target, if we do not give any surprise to the IMF then there will be no problem.
He said that tax reforms are an important part of the government’s structural reforms agenda. Deficits have to be controlled to control inflation.
He said that the process of reforming the tax system is ongoing to achieve economic stability, increase in revenue is the first priority of the government and the target is to increase the tax-to-GDP ratio to 13 and a half percent in three years. Deficits have to be controlled to control.
They are trying to bring transparency through digitalization, they say that the aim is to control the incidents of corruption and harassment, digitalization will also increase revenue, 4 to 5 months worked on the design, approved in September, now. Digitization is in progress.
Want to overcome tax gaps and leakages through data analysis, where there are leakages include sugar, cement and textile sectors.
The Federal Finance Minister said that deficits have to be controlled to control inflation, inflation has come down from 30, 40 percent to 5 percent.
On this occasion, the Minister of State for Finance Ali Pervez Malik said that they want only the salaried class and the industry not to bear the entire burden, the people of status should also contribute legitimately to the development of Pakistan.
