Islamabad: Federal Minister of Finance Senator Mohammad Aurangzeb has rejected objections to tax increases on the wealthy class, stating that those with higher incomes should bear higher taxes, and there should be no objection to this.
During his post-budget press conference, Minister Mohammad Aurangzeb stated that it is necessary to broaden the scope of taxes. He expressed dissatisfaction with the current 10% tax rate on the TOGDP ratio, proposing an increase to 13% for better management across various departments.
Aurangzeb emphasized the ongoing digitization of the informal economy, stating that compliance and enforcement of taxes are lacking. He emphasized that digitalization is a priority to reduce corruption and enhance transparency.
He mentioned that the invention of non-filers may hardly occur in any other country. Therefore, tax rates for non-filers have been increased. There is also an increase in business tax transactions for non-filers, aimed at bringing them into the tax net. Those with higher incomes should bear higher taxes, and there should be no objection to this. The tax burden on the wealthy class is currently 35%.
“We have data on the entire lifestyle of citizens,” said the Finance Minister, indicating the importance of data digitization. “We will form a team to digitize lifestyle data, which will be checked by a field team, followed by action.”
Senator Mohammad Aurangzeb mentioned challenges in the introduction of the track and trace system, which aims to prevent tax evasion in every sector, including tobacco and cement.
“The government’s priority is to bring the private sector forward,” he said. “We need to create an environment for them.”
During the press conference, Minister of State for Finance Ali Pervez Malik also expressed concerns about public difficulties. “Shahbaz Sharif wanted to provide relief 100 times, but our economy also has certain realities,” he said. “We feel that the path Shahbaz Sharif has chosen is difficult and complicated, but the government needs some time.”
Ali Pervez Malik mentioned that tax relief of up to Rs. 50,000 has been provided for the salaried class. “Those earning one lakh rupees belong to the middle class, so we did not impose a heavier burden on the middle class,” he said. “Those earning one lakh rupees have been given the lowest burden.”
He added, “The wealthy class was leaving the country due to excessive taxes. Non-filers have been given time to come into the tax net. After digitization, taxes will also be collected from non-filers and they will be questioned.”
It’s noteworthy that yesterday, Federal Finance Minister Senator Mohammad Aurangzeb presented a budget of Rs. 18.87 trillion.
