Pakistan has taken steps to reduce the burden on the salaried class by expanding the tax net.
On Sunday, Khurram Schehzad stated that a reasonable tax would be collected from wholesalers, retailers, and traders in the near future. He made these comments while appearing on Aaj News’ program “Dus” via video link.
He added, “We had good meetings with retailers. You will hear new things and new taxes.”
“Our plan is to collect a reasonable tax from wholesalers, retailers, and traders so that everyone comes under the tax net, helping create an equitable economy.”
The International Monetary Fund (IMF) and experts have urged the government to increase the number of taxpayers and reduce the burden on the salaried class.
In September, the IMF’s Executive Board approved a new $7 billion, 37-month loan agreement for Pakistan, requiring “sound policies and reforms” to strengthen macroeconomic stability. This approval released an immediate $1 billion disbursement to Islamabad.
Schehzad mentioned, “We have identified three to four years, and all four provinces have agreed to impose agriculture tax. Compliance and postmen are the next stage.”
He also stated that inflation in Pakistan is moving at a better pace than in Egypt, Argentina, and Turkey.
Regarding the increase in salaries of lawmakers, he said it was a cabinet decision.
“My point of view is that if an MNA’s salary is not sufficient for the kind of work they do, it should be reviewed.”
He also mentioned that Pakistan would save Rs170 billion annually by ending irregularities in the pension system.
Moreover, Schehzad highlighted that the government aims to save $1 billion from the $3 billion total cost of running the civil government.
There are around 43 ministries and over 400 departments under the federal government, and he added, “We need to lessen the federal government’s footprint.”
