ISLAMABAD: Minister for Finance and Revenue Muhammad Aurangzeb addressed concerns of stakeholders regarding budget for fiscal year 2024-25 presented before National Assembly a day ago.

Addressing media persons, Aurangzeb said widening tax base was essential, and priority. “Current tax-to-GDP ratio, which stands at sub-par 10 percent, is simply unsustainable. In three years, we want to enhance this tax-to-GDP ratio to 13 percent,” he said. “We seek to end undocumented economy and digitise finances.” Regarding Petroleum Development Levy, which is proposed to be enhanced from Rs 60 to Rs 80 per litre, Aurangzeb said increase would be gradual during next fiscal year.  “PDL will be linked to international oil prices,” he said. On salaried persons facing higher taxation, he said government has kept empolyees earning up to Rs 600,000 a year exempted. “Similarly, top slab of 35 percent has also been kept unchanged.” “However, we have made some changes in tax slabs,” he said, adding that non-filers will see an increase in “Tax on transaction”.

At present, Aurangzeb said cash to tune of Rs 9 trillion remains in circulation. “This shows weight of undocumented economy,” he said. He shared that Export Refinance Scheme is being shifted from State Bank of Pakistan (SBP) to EXIM Bank. “We have made it mandatory that a huge chunk of refinance fund shall be provided to SME sector,” he said. On IT sector, Aurangzeb said that country’s IT exports have reached $ 3.5 billion, which government aims to take them to $ 5 billion. On inflation rate targeted at 12 percent for upcoming fiscal, Secretary of Finance Imdadullah Bosal said rate is realistic. “Policy rate remains at 20.5 percent, which is considerably high leading to demand compression,” he said. Meanwhile, on issue of privatisation, Aurangzeb said government is working with all stakeholders. “Two assets namely PIA and Islamabad Airport are already at play. On reducing government expenditure, Minister said authorities are working on shutting down some ministries, which will be noticed in coming months. Meanwhile, talking about Dubai Leaks, Chairman Federal Board of Revenue Asim Ahmad said he has been assigned to brief Ministry of Finance in this regard. “We have imposed taxes and Rs 6 billion cases are in appeals. However, we can’t divulge their names due to confidentiality reasons,” he said.