Tax filers doubled in current FY 2024-25, says finance minister

ISLAMABAD: The number of tax filers has doubled from last year’s 1.6 million to 3.2 million till date whereas 723,000 new filers have registered themselves, Finance Minister Muhammad Aurangzeb said on Sunday.

Addressing a press conference in Islamabad, the finance czar added that the credit ratings have gone forward, and “we will continue this journey till we get into investment grade at least into B or B- ratings as we go forward”.

In addition, he said, the terms non-filers and under-filers have been abolished, adding that around Rs1.3 trillion estimated tax evasion is done.

He reiterated the government’s commitment to reducing the size of the federal government, adding decision regarding the abolition or merger of six ministries has already been made and was at the implementation stage aiming at reducing federal expenditures.

“Out of six, there is one ministry [Capital Authority] that is being abolished”. He said, that after this process is over, the next five ministries would be taken for the process.

“If Pakistan wanted to be included in G20, it has to document its economy and do away with the cash economy,” he said. “The country’s economy stands at $700 plus currently however it is shown only $325 billion.”

Even tax collection could have a Rs7 trillion upside impact as the government goes forward. He said, there were 3 lack manufacturers, and only 14 % are registered whereas out of 3 lac wholesalers, only 25 were registered in sales tax.

“Fore uplifting the economy and implementing the reform measures, there could be short-term pain as there was no other option.” However, he made it clear that a tough decision had to be implemented to put Pakistan on a sustainable growth path.

Talking about the IMF bailout package, FM added that there were two main reasons for going to International Monetary Fund (IMF) for Extended Fund Facility (EFF) which include bringing permanence to macroeconomic stability and executing critical reforms under homegrown economic agenda.

He said, that macroeconomic stability, creates a foundation, and “if the foundation is not strong, we cannot construct a house. “If we have to go for inclusive and sustainable growth, it has to be on the background of the macroeconomic stability,” he remarked.

For homegrown economic reform agenda, he said, we will always consult our think tanks in the country and consider foreign advice as we go forward. “it is neither offense nor defence. We need the best brains who can guide and support us.

He said the measures taken by the government were showing positive results as indicated by economic indicators adding the results coming out were not theory but could be witnessed practically by seeing results.

The minister said, there has been a 29 percent increase in exports on a year-on-year basis whereas inflation has decelerated from 38 percent to single digit and would go down further. He attributed these developments to the leadership of Prime Minister Shehbaz Sharif and also lauded the caretaker government for the purpose.

He remarked that in addition to institutional flows (debt or equity) foreign direct investment was also coming into the country citing examples of investments by Aramco, Gamber, and BYD. “The confidence of investors gives clearance to the macroeconomic stability that is coming thorough.”