The federal government would look into the concerns of traders and industrialists over the budget, Finance Minister Muhammad Aurangzeb said on Saturday as he admitted that the industry was facing difficulties due to “tough decisions.”
“To get rid of the IMF, we will have to lead exports and bring in direct foreign investment. We will look at the budget with a broad perspective and address the concerns of both traders and industrialists,” he said while addressing the business community at the Federation of Pakistan Chambers of Commerce and Industry in Lahore.
Pakistan recently approved its tax-heavy Fiscal Year 2024-25 budget as several business experts reiterated that the government failed to tax sacred cows despite Finance Minister Muhammad Aurangzeb’s ambitions.
The government further increased taxes on the salaried class. For those earning between Rs600,000 to Rs1,200,000 per annum, the tax rate has been increased from 2.5%% to 5%.
Aurangzeb added that taxes would be imposed on all traders without exception and at all costs amid concerns by small traders and retailers.
He reiterated that the government has to increase the tax-to-GDP ratio to improve the economy. “It takes two to tango,” he said while justifying his decision to impose taxes on every sector.
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According to Aurangzeb, the government was making efforts to digitise the Federal Board of Revenue to minimise human intervention.
He admitted that cabinet members’ decision to not take salaries won’t make difference to the national exchequer. “If this has to be the last IMF programme, then we should have an export-led economy,” Aurangzeb said, “domestic investors are as important as foreign investors.”
