‘All traders will be taxed’

Aurangzeb assured efforts to increase tax-to-GDP ratio to 13% in next three years

LAHORE:

Federal Finance Minister Muhammad Aurangzeb on Saturday said all traders would be taken into the Federal Board of Revenue’s (FBR) tax base without any exceptions and at all costs.

However, he assured the traders that the government would look into their concerns about the budget.

Speaking to the business community at the regional office the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Lahore, the finance minister acknowledged the objections raised by small businessmen over new taxes.

However, he added that these taxes were necessary as small businesses had previously not been taxed.

The minister elaborated that efforts were under way to increase the tax-to-GDP ratio to 13% in the next three years.

He hinted at reducing the State Bank of Pakistan’s policy rate, saying that there was space to accommodate this year. He noted that pensions for retired employees was a major burden on the government.

Aurangzeb emphasised that the term “non-filer” existed only in Pakistan as the concept of not filing returns was not present anywhere else in the world.

The minister continued that the government was making efforts to digitise the FBR to minimise human intervention.

“Restructuring the FBR is crucial. We will work with the FPCCI research cell to determine strategies for boosting exports and running the industry efficiently.”

He highlighted that domestic investors were just as important as the foreign ones.

The minister said if the current International Monetary Fund (IMF) programme had to be the last one, it was necessary for the country to have an export-based economy.