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Finance Minister Muhammad Aurangzeb is currently addressing a post-budget press conference in Islamabad, where he will expand upon the federal budget proposed a day ago for the next fiscal year.
On Wednesday, Aurangzeb presented his first federal budget with a total outlay of Rs18.9 trillion, which analysts said was broadly “in line with IMF guidelines”.
Pakistan’s budget for the upcoming year aims for a modest 3.6 per cent GDP growth, and sets an ambitious Rs13tr tax collection target, raising taxes on salaried classes and removing tax exemptions for the rest.
Aurangzeb, during the budget presentation, said that the goal was to widen the tax base to avoid burdening existing tax payers.
“This sub-10pc tax-to-GDP ratio is unsustainable,” he said. “We need to improve the ratio within three to four years. Name one country that is sustaining itself with a tax-GDP ratio under 10pc.”
“We aim to end the undocumented economy and digitise finances. Talk about the FBR’s performance is also warranted, since the compliance and enforcement was not up to par.”
More to follow
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