Unaddressed Flaws Will Lead to Zero GDP Growth: Finance Minister

Federal Finance Minister Senator Mohammad Aurangzeb said that 95 percent of people will not be affected by the Tax Amendment Bill.

He emphasized that if the flaws in the system are not fixed, the result will be zero.

The government aims to increase the tax-to-GDP ratio to 13.5%. The focus is on fixing the faulty processes, and the purpose of the Tax Amendment Bill 2024 is to expand the scope of taxes.

He acknowledged that the tax burden on salaried individuals is higher, and that all sectors will be included in the tax net.

On Tuesday, a meeting of the Senate Standing Committee on Finance took place, attended by committee members, Finance Minister Mohammad Aurangzeb, and Chairman of the Federal Board of Revenue (FBR).

During the meeting, Senator Shibli Faraz said that the public wants the taxes collected to be used for their benefit.

He criticized the language used to enforce tax collection, saying that tightening the noose, shutting down phones, and freezing accounts were not appropriate.

Shibli Faraz also pointed out the lack of trust between the public and the government, emphasizing that the measures taken to collect taxes were not helpful and that talk of arrests and crackdowns was not right.

Finance Minister Mohammad Aurangzeb agreed with Shibli Faraz’s remarks, stressing the importance of restoring trust between the tax authority and taxpayers.

The Finance Minister reiterated that the goal of the Tax Amendment Bill 2024 is to expand the scope of taxes.

He also noted that the tax burden on salaried individuals is too high, and all sectors will be included in the tax net.