Finance Minister Emphasizes Collective Effort to Increase Tax-to-GDP Ratio
Finance Minister Muhammad Aurangzeb highlighted the importance of collaboration from all sectors to boost the tax-to-GDP ratio, amidst resistance to tax reforms from traders. Traders nationwide have protested new tax measures, particularly the Tajir Dost Scheme introduced by the Federal Board of Revenue (FBR) to formalize the retail sector.
During a press conference in Islamabad, Aurangzeb stressed the need to expand taxation to sustain the economy, aiming to increase the tax-to-GDP ratio from 8.8% to 15%. He urged sectors to make a collective effort in paying taxes, stating there is no room for tax evasion in the country.
Aurangzeb also discussed the recent decrease in inflation and predicted a reduction in the State Bank of Pakistan’s policy rate accordingly, which will benefit the industry sector. Additionally, he mentioned Pakistan’s upgrade by global rating agencies Fitch and Moody’s, signaling an improvement in macroeconomic conditions.
Overall, the minister emphasized the importance of moving towards a sustainable economy through collaborative tax efforts and positive economic indicators.
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