Financial reforms to help end WB, IMF support

LAHORE : Punjab Finance Minister Hashim Jawan Bakht has said that Pakistan will not require any World Bank (WB) and International Monetary Fund (IMF) support in future as the government is introducing structural and financial reforms following which dependency on these international institutions will come to an end.

Addressing the annual Tax Day event here Wednesday, he said these structural reforms were unavoidable and unpopular decisions were the need of the hour to avoid the IMF and World Bank in future.

The minister believed that the results of unpopular decisions and reforms would be visible gradually. He said the government was making the tax payment system easy and taxpayer friendly.

He was of the view that power devolution had increased the revenue collection benefiting the public. The government gave due respect to the taxpayers and believed that they were partnered in the development and economic growth of country, he said adding that taxpayers of the Punjab Revenue Authority (PRA) would be increased to 100,000 by 2020 which started from 2000 taxpayers to reach 65,000 while there was a need to increase the tax base at municipality level in the similar way. He said the devolution increased the taxpayers and tax base in the province. He asked the PRA chairman to invite the new taxpayers too in the Tax Day celebrations to motivate, encourage and give ownership to them as well.

The minister said that minus-inspector regime in the taxation system would be the game changer. The government has been focusing on streamlining the revenue collection at federal and provincial levels while it required only public to increase the tax collection as Pakistanis are one of top charity giving nations.

Provincial Minister for Excise and Taxation Hafiz Mumtaz and Provincial Minister for Board of Revenue (BOR) Malik Muhammad Anwar said that promotion of tax culture was crucial for the economic growth of the country.

They said if the taxpayers got belief that their paid taxes were being spent on their welfare projects then everyone would willingly pay the taxes. They said that corruption-free taxation system was the government agenda.

PRA Chairman Javed Ahmed appreciated the support of the Excise and Taxation, and Board of Revenue (BOR) departments for observing the Tax Day celebrations. He said the PRA last year collected Rs110 billion taxes with average growth of 36 percent. Meanwhile, the Lahore Chamber of Commerce and Industry and Punjab Revenue Authority (PRA) organised a walk in connection with Tax Day to create awareness about importance of tax payment.

The LCCI Acting President Khawaja Shahzad Nasir, Vice-President Faheem-ur-Rehman Saigal, PRA Chairman Javed Ahmed, and leading businessmen and representatives of trade and industrial associations took part in the walk.

Punjab Revenue Authority chairman said the Authority was working eagerly to broaden its tax base and was facilitating taxpayers. He said that PRA was focusing on digitalisation as it was the only solution to the issues.

LCCI Acting President Khawaja Shahzad Nasir said that tax reforms should be introduced in consultation with the stakeholders.

Faheem-ur-Rehman Saigal said that tax reforms like developed countries could enhance the government revenue. He said that the LCCI believed that for the promotion of tax culture in country, the government would have to bring down the tax rate besides bringing the untaxed sectors into the tax net.