Islamabad (Finance Reporter)-Finance Minister Muhammad Aurangzeb has unequivocally rejected the traders’ demand for tax withdrawal, emphasizing that every sector of society must contribute to the tax base. Addressing a press conference in Islamabad on Tuesday, he explained that exempting traders from income tax would unfairly burden the salaried class and manufacturing sector.
Aurangzeb assured traders that the government would provide all possible facilities and address their legitimate demands, but tax withdrawal is not feasible. He stressed that taxation is essential for a country’s prosperity, and no nation can thrive without it.
The finance minister also dispelled rumors of an increase in withholding tax, providing clarity on the government’s tax policies. Regarding the agreement with the International Monetary Fund (IMF), Aurangzeb revealed that the lender has no objections to targeted subsidies. He suggested that subsidies can be effectively delivered to deserving sections through the Benazir Income Support Programme (BISP).
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Aurangzeb announced that discussions with chief ministers will be held this week to finalize a uniform policy, leading to the preparation of a national financial agreement in consultation with provinces this month. He also confirmed that talks for loan rollover with friendly countries are in the final stage, with institutions soon informing their governments about the development.
The finance minister’s statements demonstrate the government’s commitment to taxation reform, subsidy targeting, and collaboration with provinces and international partners. By rejecting the traders’ demand for tax withdrawal, Aurangzeb has reaffirmed the importance of a broad tax base for Pakistan’s economic prosperity.
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