Finance Minister Muhammad Aurangzeb has unequivocally stated that all sectors, including traders, must pay taxes, affirming that this group will have no tax exemptions.
The finance minister emphasized the government’s commitment to providing necessary facilities to traders and addressing their legitimate concerns but maintained that tax contributions from every sector are essential for national progress.
During a press conference on Tuesday, in response to calls for tax relief for traders, Aurangzeb argued that eliminating taxes for traders would unfairly redistribute the burden to salaried workers and the manufacturing sector. He pointed out that 43 percent of economic sectors contribute less than one percent to tax revenues, underscoring the need for these sectors to increase their tax contributions.
Read: FBR Plans to Raise Withholding Tax Rates Amid Revenue Decline
“The salaried class is already paying more than its share relative to GDP,” Aurangzeb noted, stressing the importance of shared fiscal responsibility across all sectors. “We cannot depend solely on charity; everyone must contribute to the country’s development.”
The Finance Minister also acknowledged the collaborative efforts that have reduced inflation to a single-digit level, highlighting recent improvements in Pakistan’s credit ratings by Fitch and Moody’s as positive indicators of economic progress. He reported a boost in foreign exchange reserves, a decline in inflation to 9.6 per cent, increased currency stability, and a gradual reduction in the policy rate, all signs of advancing economic health.
Aurangzeb reassured that distributors, wholesalers, and retailers are vital to the economy and that the government is poised to support them fully. He encouraged stakeholders to present suggestions, promising that the government would consider and act upon viable recommendations.
