FAISALABAD: Minister for Finance Senator Muhammad Aurangzeb on Friday said the government was fully digitising the taxation system to eliminate tax leakages and corruption, increase revenue collection, and bring greater transparency to the tax administration.
Addressing a representative meeting of the Faisalabad Chamber of Commerce and Industry (FCCI) here, the finance minister said preparations for the next federal budget had begun from Faisalabad, describing the session as part of the government’s pre-budget consultation process rather than a post-budget discussion, says a press release.
He said the Finance Division would formulate the next budget, while the Federal Board of Revenue (FBR) would focus on tax administration and revenue collection. He stressed that the private sector must play a leading role in driving Pakistan’s economic growth.
Aurangzeb said the policy interest rate had declined from 22 percent to 11.5 percent, while the elimination of cross-subsidies would further reduce electricity tariffs. He added that, following consultations with stakeholders, the government had abolished advance tax and super tax.
The minister said Nadra’s database was being integrated with the FBR system to curb tax-evasion, corruption, and revenue leakages.
He noted that digitisation had already begun in the sugar sector, resulting in an additional Rs60 billion in sales tax collection.
He added that the government would introduce a medium-term tax strategy for the small and medium enterprises (SME) sector, while regulatory duty and advance tax on agricultural machinery had been reduced to zero.
Referring to the regional trade, Aurangzeb expressed hope that improving conditions regarding Iran would strengthen trade in the region. He also said Pakistan was continuing efforts to secure further tariff concessions from the United States to enhance exports.
The minister acknowledged that the closure of border routes had caused significant losses to the potato and pharmaceutical sectors but stressed that national security would not be compromised. “Whatever the economic cost, there can be no compromise on national security,” he said.
He further said the government was encouraging investment in the information technology and construction sectors but made it clear that no incentives would be offered for speculative trading in property files. He also assured the business community that all stakeholders would be consulted on anti-dumping duty matters.
Earlier, FCCI President Farooq Yousaf Sheikh said several proposals submitted by the business community had been incorporated into the recent federal budget, while a number of longstanding issues had also been addressed. He invited the finance minister to attend the Faisalabad Expo, scheduled to be held at the Lahore Expo Centre from July 24 to 26.
