ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb has said that countries run on taxes and not on charity and it is not possible that we should apply taxes on only one class.
While holding a press conference in Islamabad along with federal ministers Atta Tarar and Azam Nazir, Finance Minister Muhammad Aurangzeb asked how can the country run with a ratio of 9 percent tax to GDP. The country will not run on charity, but on taxes, schools and hospitals can be run on charity, but the country runs only on taxes.
He said how can foreign investors be angry on the issue of banning SIMs, why can’t those who are paying 10,000 mobile bills file a tax return, it is necessary to stabilize the tax system to run the country. 50,000 tax is applied on the rich class and it is not possible that we apply tax on only one class.
The Finance Minister said that the IMF program is for the benefit of Pakistan. In the next 7 to 10 days, the IMF mission will come to Pakistan in which the future program will be discussed.
Mohammad Aurangzeb added that inflation is now at 17% which will gradually decrease further while the policy rate will also come down by July-August. There is a need to reduce non-developmental expenditure.
He said that steps have to be taken to bring pension expenditure under control and infrastructure reforms are part of our agenda while digitalization of FBR is also in progress.
In the press conference, Prime Minister Nazir Tarar said that political stability is connected with economic stability, pension reforms are being discussed, a large part of the annual expenses goes to the pension of retired employees.
On this occasion, Information Minister Atta Tarar said that a committee has been formed on pension reforms which will consider the proposals and inform the public about the pension reforms.
