six ministries are undergoing ratification to reduce federal expenditures, with one ministry set for abolition.
Tax Filers Nearly Doubled This Fiscal Year, Says Finance Minister
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| Tax Filers Nearly Doubled This Fiscal Year, Says Finance Minister |
Published by Watts News
Reporter: Imtiaz Ali Abbasi
Date: September 29, 2024
Watts News
ISLAMABAD: Finance Minister Muhammad Aurangzeb announced on Sunday that the number of tax filers for the current fiscal year has nearly doubled compared to last year, with approximately 723,000 new filers registered. He made these remarks during a press conference alongside the chairman of the Federal Board of Revenue (FBR).
This increase follows Prime Minister Shehbaz Sharif's approval of significant measures aimed at enhancing tax enforcement, including a ban on banking and financial transactions for non-filers. "We, as a government, are walking the talk," Aurangzeb stated, emphasizing the administration's commitment to improving tax compliance.
The finance minister revealed that a recent report presented to the prime minister highlighted an estimated tax evasion of Rs1.3 trillion among individuals who underreport their income. He reiterated the government’s commitment to combatting cash transactions, stating, "We have to declare war on cash in this country."
Aurangzeb noted that the estimated cash in circulation stands at around Rs9 trillion, which aligns closely with the FBR's budget of Rs9.3 trillion, suggesting that the actual size of Pakistan's economy exceeds $700 billion.
Consequences for Non-Filers and Under-Filers
The minister warned that non-filers will face restrictions in purchasing vehicles, properties, and mutual funds, as well as difficulties in banking transactions. For under-filers, he announced plans to minimize human intervention by creating a digital interface to compare declared income against actual assets.
He emphasized that utilizing existing lifestyle data would enhance tax compliance and improve the country's tax-to-GDP ratio. For more updates, visit Watts News.
Inflation and IMF Agreement
Regarding inflation, Aurangzeb reported a decrease to single digits, attributing this improvement to the successful completion of a stand-by agreement with the International Monetary Fund (IMF). He highlighted the importance of a new and extended IMF program for achieving lasting macroeconomic stability and implementing structural reforms.
The recent approval of a 37-month, $7 billion Extended Fund Facility by the IMF is contingent upon unpopular reforms, including expanding the tax base. Both the prime minister and the finance minister have asserted that this will be the final IMF program for Pakistan.
Aurangzeb reiterated the necessity of achieving macroeconomic stability, stating, "This isn’t a theory anymore; we are seeing the results." He also discussed rightsizing initiatives, indicating that six ministries are undergoing ratification to reduce federal expenditures, with one ministry set for abolition.
For more insights on economic policies, check out our articles on Watts News.
These measures aim to strengthen Pakistan’s economic foundation and enhance fiscal responsibility. Stay tuned to Watts News for further updates on this developing story.
