Finance Minister Commits To Digitalization For Tax Expansion

Finance Minister Muhammad Aurangzeb has pledged to expand the tax base through the digitalization of tax collection mechanisms, emphasizing that Pakistan cannot afford to backtrack on its efforts to increase the number of taxpayers.

Speaking at a panel discussion during the Pre-Budget Conference organized by a local publication and the Federation of Pakistan Chambers of Commerce & Industry in Lahore, the country’s new finance minister reiterated the government’s commitment to this goal.

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He revealed that Prime Minister Shehbaz Sharif has established a committee to tackle the challenges in implementing the Tajir Dost Scheme. This committee includes key figures such as the Federal Board of Revenue chairman, the finance secretary, and the commerce ministry secretary. Despite the existence of the scheme, only 75 retailers and shopkeepers had been registered as of April 30.

The minister underscored the significance of these structural reforms in bringing retailers, shopkeepers, and traders into the tax net and formalizing the undocumented economy. He warned that failure to implement such reforms may compel the government to consider alternative measures.