Finance Minister Muhammad Aurangzeb declared that the goal is to increase the tax-to-GDP ratio to 13% in the next three years from its present level of little over 9%.
The announcement of the massive Rs18.8776 trillion budget plan for the fiscal year 2024–25 was followed by the minister’s remarks at a post-budget news conference.
The Petroleum Development Levy (PDL), which will be modified in accordance with global oil prices, is one of the budgetary solutions that Aurangzeb discussed. It will expand gradually.
In response to queries concerning possible modifications to pay scales, the foreign minister said that the tax rates for those in the highest tax band and the exempted class will not move. On the other hand, there are notable changes to tax slabs, as the tax rate for the non-salaried class—which includes the professional community—has been raised to 45%.
Aurangzeb reaffirmed the government’s intention to achieve a 13% tax-to-GDP ratio and to expand the tax base.
Read More: Finance Minister Aurangzeb presents federal budget 2024-25
In addition, there will be an increase in the business transaction tax for non-filers. Speaking about the taxes of shops, Aurangzeb recalled the government’s April attempt to start voluntary registration, to which just 75 registrations were received.
The minister emphasized that since 2022, taxes on wholesalers and merchants have been overdue. Aurangzeb said that even with attempts to protect them, it is now essential to include this industry in the tax system.
Aurangzeb emphasized the government’s commitment on digitizing the economy while outlining future goals. He emphasized that this action is a critical step in the nation’s economic reforms as it attempts to reduce corruption and increase transparency.
