Tax reforms reduced burden on exchequer: Aurangzeb

FAISALABAD: Finance Minister Muhammad Aurangzeb said on Saturday that the government’s move to expand the tax base reduced the burden on the national treasury.

During his address at the Faisalabad Chamber of Commerce, the finance czar shared insights on Pakistan’s economic challenges, government reforms and future plans for economic stability.

He affirmed that Pakistan’s economy is moving towards improvement, driven by key reforms. He emphasized that a lower policy rate has also benefited business owners, and ongoing economic stability measures were yielding positive results.

He highlighted that recent tax reforms had significantly increased revenue collection.

Addressing concerns about seeking assistance from the International Monetary Fund (IMF), he noted that sustainable governance cannot rely solely on charity, stressing the importance of a strong economic framework. “We turn to the IMF to sustain our economic framework. They are willing to offer more financial support, provided we implement tax reforms.”

He highlighted that the government is committed to these reforms, with the prime minister fully backing the efforts.

Aurangzeb further underscored the need for public-private sector collaboration to drive economic growth, stating that working together is crucial for long-term progress. He acknowledged the difficulties faced over recent months regarding inflation and interest rates.

“We have seen a decline in the policy rate, especially in auto financing, and prices of essential commodities like sugar and ghee have also decreased,” he noted.

However, he pointed out that middlemen often contribute to price hikes and emphasised the recurring issue of sugar prices, assuring that the food minister has promised further price reductions during Ramazan.

The finance minister acknowledged the burden on salaried individuals and announced steps towards tax system digitisation. “Salaried persons from seven sectors will be able to file their tax forms online by November,” he stated, adding that the entire tax process is being digitalised to improve transparency and efficiency.

Aurangzeb also addressed structural reforms within the government. “We are working to merge various ministries and departments to cut costs. Currently, five to six ministries are under consideration for mergers, and one ministry has already been dissolved,” he revealed.

He further mentioned that the prime minister recently met with the chief justice to expedite pending tax cases, as Pakistan loses nearly one trillion rupees annually due to unresolved cases.

Commenting on fiscal responsibility, the minister acknowledged that efforts to reduce government expenditures began during the previous PTI government, calling it a positive initiative that the current government continues to pursue.

Aurangzeb assured businessmen that the government remained committed to implementing reforms aimed at strengthening Pakistan’s economy and reducing financial burdens on citizens, promising visible improvements in the coming days.