Finance Minister Aurangzeb, during a post-budget press briefing in Islamabad, emphasized the government’s commitment to expanding the tax base and increasing the tax-to-GDP ratio from below 10% to 13% over the next three years.
Presenting the federal budget for FY2024-25, which aligns with IMF guidelines, Aurangzeb highlighted the aim for 3.6% GDP growth and a Rs13 trillion tax collection target, involving higher taxes on salaried classes and the removal of certain tax exemptions. He stressed the need to digitize the economy to reduce corruption and improve transparency, aiming to document cash transactions and integrate retailers and traders into the tax net.
Addressing concerns about inflation and expenditure cuts, Aurangzeb mentioned plans to gradually increase the petroleum levy and make necessary changes to tax slabs to ease the burden on individuals. He also discussed the government’s efforts to privatize state-owned enterprises and improve the power sector’s governance. Finance Secretary Imdadullah Bosal and Minister of State for Finance Ali Pervaiz Malik acknowledged the challenges posed by high inflation and policy rates, stressing the importance of direct taxation and fiscal responsibility to avoid burdening future generations. The budget also includes significant allocations for public sector development and support for small-to-medium enterprises and freelancers.