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 media persons, Aurangzeb said widening the tax base was essential, and a priority.
“The current tax-to-GDP ratio, which stands at a sub-par 10%, 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 from Rs60 to Rs80 per litre, Aurangzeb said the increase would be gradual during the next fiscal year.
Key highlights of Budget 2024-25
“The PDL will be linked to international oil prices,” he said.
On salaried persons facing higher taxation, the finance minister said the government has kept empolyees earning up to Rs600,000 a year exempted. “Similarly, the top slab of 35% has also been kept unchanged.”
“However, we have made some changes in the tax slabs,” he said, adding that non-filers will see an increase in “tax on transaction”.
Aurangzeb said the government wants to end the concept of non-filers.
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 registration of retailers on a voluntary basis. From July onwards we will start imposing taxes,” he said.
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