Federal Minister for Finance and Revenue Muhammad Aurangzeb on Thursday addressed the concerns of stakeholders regarding the budget for fiscal year 2024-25 presented before the National Assembly a day ago.
Addressing the media persons, Aurangzeb said widening the tax base is essential.
“The current tax-to-GDP ratio is simply unsustainable. In three years, we want to enhance this tax-to-GDP ratio to 13%,” he said.
“We seek to end the undocumented economy and digitise finances.”
Regarding the Petroleum Development Levy (PDL), which is proposed to be enhanced by Rs60 to Rs80, Aurangzeb said that the increase would be gradual during the next fiscal year.
“The PDL will be linked to international oil prices,” he said.
On taxing the salaried persons, the finance minister said that the government has kept the Rs600,000 annual salaried class exempted. “Similarly, the top slab of 35% has also been kept unchanged.”
“However, we have changed the salary slabs,” he said.
The federal minister said it is important to bring the retail and wholesale segment into the tax net, to widen the tax base.
“Back in April, we initiated the registration of retailers on a voluntary basis. From July onwards we will start imposing taxes,” he said.
Prime Minister Shehbaz Sharif-led coalition government’s Finance Minister Aurangzeb announced Pakistan’s federal budget 2024-25, targeting a modest 3.6% growth for the coming fiscal year, as Islamabad looked to appease the International Monetary Fund (IMF) and balance its burgeoning books with higher taxation.
The salaried group emerged frustrated, while capital markets rejoiced at ‘status quo’. It was the real estate and IT sectors that were left disappointed. Government employees were offered raises, while pensions also increased.
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