Federal Minister for Finance and Revenue Muhammad Aurangzeb issued a warning on Tuesday, expressing concerns about the continuous raising of taxes for the business community and salaried class. He emphasized the importance of integrating untaxed sectors into the economy and ensuring the effective enforcement of taxation laws. Additionally, he reiterated the government’s commitment to taxing the agriculture sector following the agreement of all chief ministers to enact relevant legislation.
During his address to members of the Karachi Chambers of Commerce & Industry, the finance minister expressed surprise at the reluctance of the industry and the International Monetary Fund (IMF) to accept the government’s intentions to tax the largely untaxed agriculture sector. He stressed the urgency of expanding the tax net, bringing previously untaxed sectors into compliance, and reducing the burden on existing taxpayers, particularly the business community and salaried class.
Aurangzeb highlighted the government’s efforts to achieve macroeconomic stability for sustainable growth, emphasizing the need to make difficult decisions to address structural issues and achieve fiscal space. He also commended the State Bank’s decision to reduce interest rates, acknowledging the challenges faced by the business community due to high taxes and energy tariffs.
Furthermore, the finance minister addressed concerns about tax refunds and clarified the government’s commitment to releasing them promptly, in line with the prime minister’s directive. He also emphasized the government’s focus on reducing expenditures at the federal level and implementing a plan to right-size the government.
In addition to Aurangzeb’s remarks, Minister of State for Finance, Revenue, and Power, Ali Pervez Malik, highlighted the government’s efforts to attain macroeconomic stability and the positive impact on various economic indicators. Federal Board of Revenue Chairman, Malik Amjed Zubair Tiwana, addressed the business community’s concerns by announcing the postponement of the implementation of biometric verification requirements.
