Islamabad: Finance Minister Senator Muhammad Aurangzeb has stated that two provinces have already implemented the agricultural tax, while discussions are ongoing with the remaining two. He added that negotiations with the International Monetary Fund (IMF) on this matter are also in progress.
Talking to the media at the Parliament House, the finance minister said that efforts are underway to ensure government employees submit details of their assets. He made it clear that the government will not seek any concessions from the IMF regarding this issue.
Tax Reforms and Transparency Initiatives
Earlier, during a meeting of the Senate Standing Committee on Finance and Revenue, Muhammad Aurangzeb briefed lawmakers about ongoing tax reforms. He highlighted the government’s efforts to simplify the income tax form for salaried individuals and introduce a faceless system in customs for increased transparency.
He also mentioned that the government plans to separate tax policy from the Federal Board of Revenue (FBR) in the next fiscal year. This move aims to reduce the burden on salaried individuals. He clarified that 60 to 70 percent of the salaried class does not fall under the super tax category.
Shaban Moon Sighted, Shab-e-Barat on February 13
FBR Faces Revenue Shortfall
The committee was informed that the FBR faced a revenue shortfall of Rs 384 billion in the first half of the fiscal year. The FBR collected Rs 5,624 billion in revenue, falling short of the Rs 6,008 billion target.
In terms of GDP, the tax-to-GDP ratio increased to 10.8 percent in the second quarter of the fiscal year.
Committee Reviews Financial Policies and FBR Performance
The Senate committee also reviewed financial policies, the performance of the Federal Board of Revenue (FBR), and procurement procedures. Additionally, it assessed training programs for FBR officials to enhance their capabilities.
The finance minister emphasized the government’s commitment to reforms and assured transparency in tax collection and financial management.
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