The Federal Finance Minister, Muhammad Aurangzeb, has announced that all traders will be brought into the tax net without exception.
This decision is part of the government’s efforts to meet its ambitious revenue target of Rs13 trillion for the upcoming fiscal year.
The tax target is expected to increase by 40% from the current year, with a 48% increase in direct taxes and a 35% hike in indirect taxes.
The finance minister emphasized that the economy is moving towards macroeconomic stability and stressed the need for economic stability through comprehensive budgetary perspectives.
He also highlighted the importance of investment from both inside and outside the country, stating that foreign investors are as important for Pakistan as local ones.
The government aims to increase the tax-to-GDP ratio to 30% over the next three years and reduce the policy rate to stimulate economic growth.
The decision to include all traders in the tax net is a significant step towards expanding the tax base and documenting the economy.
The government has faced pressure from the International Monetary Fund (IMF) to implement economic reforms and expand the tax base.
The finance minister’s announcement is a clear indication of the government’s commitment to meeting these demands and putting the economy on a stable footing.
