Tax collection is essential for running country: Finance Minister

KAMALIA: Federal Finance Minister Senator Muhammad Aurangzeb on Tuesday reiterated government’s commitment to reduce expenditures and boost revenues as part of a comprehensive effort to strengthen the country’s economy on sustainable grounds, state-run Radio Pakistan reported.

Addressing a press conference in his hometown, Kamalia, the minister said that the tax collection is essential for running the country therefore, the government is trying to expand the tax base and introduce digitization of the tax system to eliminate corruption.

Furthermore, Finance czar added that the retail sector will be brought under the tax net from 1st of next month and over 32,000 retailers have been registered for the purpose.

The federal government would shut down parallel ministries or departments that have been devolved to provinces to significantly reduce expenditure and improve efficiency, adding, the Prime Minister has already announced the closure of Pakistan Public Works Department, a move that will help reduce the financial burden on the government.

Secondly, the government will privatize state-owned enterprises (SOEs), which have been a significant drain on the national exchequer. The minister cited the example of Pakistan International Airlines (PIA), which has a liability of 622 billion that has been transferred to the government.

Moreover, Federal Minister announced that airport outsourcing is being completed, with Karachi airport set to be handed over to the private sector by July or August this year, to be followed by Lahore airport.

Mohammad Aurangzeb said various measures have been taken to improve agriculture sector, including introduction of technology in agriculture and provision of interest free loans to small farmers.

The Finance Minister urged the private sector to come forward for the economic growth in the country.

He said the government’s plans aim to strengthen the country’s economy, reduce dependence on aid, and promote sustainable growth through taxes, compliance, and development in key sectors like agriculture and IT.