Finance Minister announces all traders will be brought under the tax net without exception

Finance Minister Muhammad Aurangzeb has announced that all traders in Pakistan will be brought into the tax system as part of efforts to achieve the ambitious revenue target of Rs13 trillion for fiscal year 2025. Speaking in Lahore, he underscored the importance of addressing power distribution issues to prevent electricity tariffs from escalating.

Aurangzeb emphasized the need to stimulate economic growth by encouraging both local and foreign investments. He proposed closing redundant federal departments and gradually reducing policy rates to bolster economic activity. He also highlighted Pakistan’s foreign exchange reserves exceeding $9 billion, signaling positive financial health, and stressed the critical role of small and medium-sized enterprises (SMEs) and the IT sector in maintaining economic stability.

The inclusion of all traders in the tax net is viewed as a significant measure to enhance government revenue. By broadening the tax base, the government aims to achieve its financial objectives and reduce reliance on external borrowing. Aurangzeb’s address also stressed the necessity of structural reforms to enhance the economy’s resilience and competitiveness.

He underscored the importance of resolving power distribution challenges to manage electricity costs effectively, which can impact both businesses and consumers adversely.

Promoting investments remains a key focus. By attracting local and international investors, the government aims to spur job creation, enhance productivity, and drive economic growth. The plan to streamline federal departments aims to improve government efficiency and curb unnecessary expenditures.

Aurangzeb also discussed the phased reduction of policy rates, which can lower borrowing costs and encourage businesses to invest and expand, fostering stronger economic growth.

In summary, Aurangzeb’s announcement outlines a comprehensive strategy to bolster Pakistan’s economy. By integrating all traders into the tax system, addressing power distribution issues, promoting investments, and supporting SMEs and the IT sector, the government aims to achieve sustainable economic growth and stability.

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