FAISALABAD: Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb said on Sunday that the elite class, enjoying luxurious lifestyle, would be brought into the tax net as more than 190,000 people had been evading tax net despite having more than one house and vehicles.
He was talking to the media during a meeting with the local businesspeople, agriculture, dairy and poultry farmers at Judgewala Kamalia. He termed the taxes lifeline for any economy, saying “we could not manage the country on borrowed money as the countries run on taxes and not on charity”.
He said that there were some discrepancies in the current taxation system. However, the government was already working to simplify it to tackle the tax-evasion issue. The tax system would also be made faceless and run without any human intervention for elimination of leakage and corruption up to the maximum extent, he added.
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He stressed the need for earning maximum foreign exchange by enhancing exports and termed it imperative to make Pakistan self-reliant and reduce dependency on imports and external financial aid.
He said that the government was taking various steps to control double-digit interest rate with a vision to trim it down to single digit as it was imperative to flourish businesses. He said that the economic survival depends on surplus production and exports. He stressed the need for political unity and robust reforms in taxation and energy sectors put the country on the road to progress and prosperity. He suggested privatisation as a means to enhance transparency and productivity and said that the government had already started work for privatisation of various entities in greater national interest. “Now we are focusing on regulating and expediting the process of privatisation.”
The minister said that many agriculture research institutes were not giving tangible results. He said that the agriculture reforms were started simultaneously in India and Pakistan; India made progress and Pakistan was lingering far behind it. He said that maximum funds should be spent on the research instead of on other administrative heads and salaries.
He said: “we should take all segments of society into confidence for national development”. He appreciated the role of Sialkot Chamber of Commerce & Industry (SCCI) and said that it was taking bold steps to contribute towards development by initiating public welfare projects.
Responding to a question, he made a clear statement that all sugar mills violating the government instructions for clearing dues of the farming community would be sealed. He said that despite phenomenal decrease in oil prices, inflation did not come down. Actually the middle man was not ready to pass on benefits to the common people; but now the government would deal with such elements with an iron hand.
He said that deputy commissioners should take steps at their own to control artificial price hike and inflation, otherwise the government would be forced to take action against miscreants. He also stressed the need for IT use and said that the government would support the sector not only for bringing transparency in all spheres but also earning precious foreign exchange by exporting innovative ideas and programs of IT experts.
He reaffirmed his government’s commitment to promoting export-led growth, identifying agriculture and Information Technology (IT) as the twin sectors to drive Pakistan’s sustainable economic growth.
He said that the International Monetary Fund (IMF) program was focused on stabilization and made it was clear that if agriculture and IT faced difficulties, it was because of us, so we should find solution and promote these sectors for sustainable economic development.
Highlighted achievements he said, government was successful in ensuring macroeconomic stability, reducing inflation to a single digit, and decreasing interest rates. He also mentioned the increase in consumption of cement and fertilizer, as well as a 58 percent surge in auto-sales, as indicators of the government’s prudent policies.
Aurangzeb reiterated the government’s commitment to bringing reforms in taxation, energy, and State-Owned Enterprises (SOEs) sectors. He emphasized the need to improve Pakistan’s tax-to-GDP ratio, which currently stands at 9-10 percent, and aims to increase it to 13.5 percent. The minister also announced plans to simplify the taxation process, ensure digitization, and reduce human intervention.
The minister expressed intention to shut down Pakistan Agricultural Storage and Services Corporation (Passco) and create an alternative mechanism for maintaining strategic reserves, may be in private sector. He also questioned the effectiveness the Higher Education Commission
The minister cited Sialkot as a role model for self-sufficiency and Kamalia Khaddar as a world brand, urging stakeholders to learn from these examples to drive the economy forward.
Aurangzeb assured the farmers and stakeholders of his full support in addressing their grievances, emphasizing the government’s commitment to serving the people of Pakistan.
He said that the government was determined to go to stakeholders at their doorsteps to benefit from their suggestions instead of merely sitting in Islamabad. “If we say we are here to serve the people of Pakistan, then we have to go wherever people are,” he said adding that the process of whole budget would be done by coming to stakeholders.
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