Underscoring the need for enhancing tax revenue, Prime Minister Shehbaz Sharif on Monday said that tax evaders and their abetters would be taken to task.
His remarks came a day after Finance Minister Mohammad Aurangzeb vowed bringing all sectors into the tax net.
Chairing a meeting in Islamabad to review overall economic situation of the country, the prime minster said that those dodging taxes would be brought to justice.
He directed the relevant authorities to expedite action against tax evaders, saying: “National progress is possible only when everyone fulfils their due responsibility.”
Highlighting his government’s major economic achievements, the premier mentioned the bullish trend in stock market and reduced inflation rate from 38% to 7%.
Pakistan’s Consumer Price Index (CPI)-based inflation dropped to 6.9% year-on-year in September 2024, the lowest since January 2021, down from 9.6% in August, driven by the high base effect, easing commodity and energy markets, and a stable currency, according to statistics issued by the Pakistan Bureau of Statistics (PBS) last month.
“Relief for the people is being prioritised over every other step to fulfill the promises made to them,” said the premier.
He said the decline in interest rate from 22% to 15% will boost business activities in the country. The PM said: “Confidence of foreign investors has increased during the last few months of incumbent government while foreign exchange reserves have also witnessed a surge due to the increase in domestic exports and record remittances.”
In addition to this, the PM paid tribute to the Punjab government for landmark reforms in the agricultural sector.
Last week, taking the lead among provinces, the Punjab Assembly approved the Punjab Agricultural Income Tax (Amendment) Bill 2024, despite a walkout by PPP and PTI lawmakers protesting the rejection of their proposed amendments.
The meeting was briefed about the current situation of the economy, inflation and actions taken against tax evaders.
‘Real estate, wholesale sectors will also be taxed’
A day earlier, Finance Minister Mohammad Aurangzeb said all the promises made with the IMF were transparent and there was nothing secret which came under discussion with the Fund’s team that visited Pakistan last week, according to The News report.
“All the promises made with the IMF on account of quantitative and qualitative targets are transparent and placed on the Fund’s website. This is Pakistan’s program which is held, supported, assisted and funded by the IMF,” he said in a televised address.
“There is no surprise in it and I welcome this visit of the IMF because of the ongoing dialogue, as mutual trust develops through dialogue.”
The National Fiscal Pact, he said, was a structural benchmark which got implemented by the end of September 2024.
He said the government had shared the right-sizing of the government plan with the IMF and its objective was to improve the public finance.
Aurangzeb said the Agriculture Income Tax (AIT) was pursued and he was thankful to all the four chief ministers for moving this agenda forward.
On taxation, the finance minister said he was firm that they would go for compliance and enforcement, adding that the salaried class and manufacturing sector could not be taxed more for revenue generation.
“All other sectors will have to play their role; we all have to contribute including real estate, wholesalers and agri income tax. It is not a request, but we will have to do it because as a country our hands have been forced. I have made it clear and I want complete clarity on this issue,” he emphasised.
— Additional input from Radio Pakistan.
