Business

Govt would not step back on tax net expansion, reiterates FinMin

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Digital Desk

2 years ago

LAHORE: Finance Minister Muhammad Aurangzeb Sunday reaffirmed that the government would provide possible facilities and hold talks, but would not back down from track to expand the tax net.

Addressing a pre-budget conference in Lahore today, the Finance Minister said that the salaried segment of society is part of the tax net, however, the business community should have to be made part of it. “We need structural reforms and lower the current account and budget deficits,” he said.

Revealing that around Rs8 to 10 trillion cash is currently in circulation in Pakistan, the finance minister underscored the need to work on issues about tax and gross domestic product (GDP) and called on businessmen to come into the tax net by themselves if they haven’t done so already.

While talking about IMF talks, he said that the global lender’s team has reached Pakistan, and talks with them will be held soon.

FinMin added that the country’s foreign currency reserves have crossed the nine billion dollars mark and the confidence of foreign investors is improving due to the government’s effective economic policies.

Setting out the government priorities, the finance czar stressed the need to work on proving the tax-to-GDP ratio, swift privatization of lossmaking state-owned enterprises (SOEs), and overhauling the energy sector.

He said that privatization will have to be done for economic stability. “You have to move towards privatization if you want economic stability in the country.”

He said that the government’s work is to make policy, while that has to be implemented mainly by the private sector which will have to play its role to bring the economic situation out of difficult times.

Digital Desk