Taxing Only Salaried Class is Not The Complete Solution: Finance Minister

Finance Minister Muhammad Aurangzeb on Thursday acknowledged the heavy tax burden on the salaried class and said continuously taxing them is not a solution. Addressing the Retail Business Council, he said other sectors particularly agriculture and retail will soon be added to the mix to contribute more to collect even bigger tax revenue. Aurangzeb said Pakistan’s economy is moving in the right direction due to improving foreign exchange reserves and the continuously decreasing interest rate. He said the government is focused on achieving stable, long-term economic growth rather than temporary relief measures. He also underscored the strict implementation of economic reforms, including streamlining customs procedures, which have been reduced from several days to just 18 hours. The Finance Minister said reforms are being modernized, and government institutions are undergoing right-sizing. He said this process first began during the 2018-2022 government’s era under former central bank governor Dr. Ishrat Hussain. The minister warned that tax evasion, including sales tax fraud and fake invoicing, will no longer be tolerated and the government is ready to take tough action. He also confirmed ongoing engagement with multilateral institutions and noted that the government is receiving budget proposals from the business community. He assured that Prime Minister Shehbaz Sharif remains committed to driving the economy toward recovery.