ISLAMABAD, Pakistan: The Finance Minister for Finance Muhammad Aurangzeb has said that the Federal Budget for the next Fiscal Year 2024-25 revolves around five principles including widening tax base and digitizing economy.
While addressing the post budget news conference in Islamabad on Thursday, the minister said that implementing a progressive income tax regime, eliminating non-filers, and protecting low-income groups are other points emphasized in the budget.
The finance minister said that below 10 percent tax to gross domestic product (GDP) ratio is not sustainable. He emphasized enhancing it to 13 percent in the next three years.
Muhammad Aurangzeb announced that tax on retailers and wholesalers will be applicable from July 01, 2024.
The minister said that the Federal Board of Revenue (FBR) has so far registered 31,000 retailers and the process of registration will continue. He said that end to end digitization in FBR is aimed at minimizing human intervention and improving transparency and client service.
The finance minister said that nobody should have any objection on progressive income tax as the affluent class needs to pay more taxes.
The finance minister said that tax has been enhanced on business transactions of the non-filers. He added that this is the first step towards doing away with non-filers in the Country.
Replying to a question, the finance minister said that record allocations have been made for the IT Sector to facilitate IT exports and youth in their startups.
Regarding the Small and Medium Enterprises (SMEs), he said banks are back to finance SME’s, IT and agriculture sectors.
Answering another question, Muhammad Aurangzeb said that 81 percent of Public Sector Development Programme (PSDP) spending has been reserved for ongoing projects while rest of the amount will go for new projects.
In addition, he said that all the stakeholders including the allied parties are being taken on board on the privatization process. He said that transactions regarding the privatization of Pakistan International Airlines (PIA) and outsourcing of Islamabad Airport will be completed by August, adding that this will follow the outsourcing of Lahore and Karachi airports.
Regarding relief measures, the Minister of State for Finance Ali Pervaiz Malik said that significant allocations have been made in this respect under the Benazir Income Support Programme (BISP).
Similarly, the largest chunk of subsidies will go for power sector to facilitate electricity consumers, including the protected customers using up to 200 units.
The minister of state further said that additional amount has been reserved for the Utility Stores Corporation to provide essential kitchen items to the deserving people at subsidized rates.
The minister also told that there is no tax on the employees earning up to Rs 50,000.
