Tax Increases Must Come with Better Public Services, Says Finance Minister

ISLAMABAD: Tax Increases Must Come with Better Public Services, Says Finance Minister, The finance minister is pushing for improved public services to warrant tax increases, as part of broader fiscal policy reforms aimed at stabilizing the economy.

Key Points,

Tax Base Expansion,
The government is working to broaden the tax base, with tax collection increasing during the current fiscal year, as the finance minister advocates for enhanced public services to justify tax increases.

Economic Growth ,
The finance minister’s call for improved public services to justify tax increases is part of a larger effort to promote economic growth and reduce poverty.

Public Spending Transparency,
The finance minister is urging for greater transparency in public spending, as well as improved public services, to justify tax increases and address economic challenges.

Tobacco Tax Increase,
Experts are recommending a tobacco tax increase as a potential solution to bolster the economy, with the finance minister being urged to consider this measure as part of broader efforts to improve public services and justify tax increases.

Minister Aurangzeb highlighted the importance of balancing relations with both the US and China, stressing that efforts are underway to improve the national economy. He stated that if taxes are to be raised, the government must also provide better facilities to the public, noting ongoing discussions about local tax matters.

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Addressing concerns from salaried individuals, Aurangzeb mentioned that efforts are being made to avoid burdening the lower-income groups with taxes. He introduced a trader-friendly scheme that simplifies the taxation process for merchants and criticized tax evaders as being disloyal to the country and its people. Paying due taxes, he noted, will strengthen the economy.

Aurangzeb prioritized providing facilities to traders and investors and mentioned that weekly meetings are held to review FBR reforms. He also called on provincial chief ministers to legislate for agricultural sector taxation.

The Finance Minister stated that comprehensive data on non-filers’ lifestyles is available, serving as substantial evidence. He assured that tax officers will not directly send notices to non-filers, reducing harassment from the FBR, and that notices will be issued through a centralized system.