ISLAMABAD: Pakistan’s Finance Minister has said that the rise in petroleum development levy (PDL) will be gradual and linked with oil prices in international market. A day after the government has unveiled its Rs18.8776 trillion budget for Fiscal Year 2024-25, Finance Minister Muhammad Aurangzeb was addressing a post-budget presser in Islamabad.
He said that below 10 percent tax to GDP ratio is not sustainable and emphasized enhancing it to thirteen percent in the next three years. The Minister announced that tax on retailers and wholesalers would be applicable from the 1st of July. He stated that the Federal Board of Revenue (FBR) has so far registered 31,000 retailers and the process of registration will continue.
Muhammad Aurangzeb stated that end to end digitization in Federal Bureau of Revenue is aimed at minimizing human intervention and improving client service and transparency. He added that nobody should have any objection on progressive income tax as the wealthy class needs to pay more taxes.
The Minister said that tax has been enhanced on business transactions of the non-filers. He added that this is the first measure towards doing away with non-filers in the country. Responding to a question, he said record allocations have been made for the Information Technology sector to facilitate IT exports and youth in their startups. Regarding the Small and Medium Enterprises, the Minister said banks are back to finance SME’s, agriculture and IT sectors.
Replying another question, the Minister said that 81 percent of Public Sector Development Programme spending has also been reserved for the current projects, while rest of the amount will provide for new projects.
The Minister added that all the stakeholders including the allied political parties are being taken on board on the matter of privatization. He maintained that transactions about the privatization of PIA and outsourcing of Islamabad Airport will be completed by August. He stated that this will follow the outsourcing of Karachi and Lahore airports.
