Mohsin Siddiqui (Chief Reporter)
In an effort to safeguard the salaried class, particularly those in the lower income bracket, Minister of State for Finance, Revenue, and Power Division, Ali Pervaiz Malik, announced on Sunday that the forthcoming budget for 2024 will focus on reducing the tax burden on these groups. Speaking to a private news channel, Malik emphasized the government’s priority to protect the middle and lower classes, adhering to directives from the Prime Minister.
One of the key initiatives highlighted by Malik is the exemption of the power tax for those using less than 200 units of electricity. This move aims to provide significant relief to lower income households, ensuring that their utility costs remain manageable. Furthermore, there will be an increased allocation of resources within the Benazir Income Support Programme (BISP), aimed at supporting the needy.
Malik outlined the government’s strategy for taxation reforms, stressing the importance of a fair contribution from all segments of society. He emphasized the need to document various sectors and implement taxation measures effectively. The government aims to maximize tax collection, with the Federal Board of Revenue (FBR) reporting a 30% increase in revenue over the last year, a trend that continues into the current financial year.
Efforts will be made to bring all forms of income under the tax net, eliminating exemptions to expand the tax base. Malik mentioned that there will be a crackdown on tax evaders, using lifestyle data to enforce compliance. Severe penalties will be imposed for tax non-compliance, and measures will be taken to prevent individuals from becoming non-filers after a single transaction.
The minister also emphasized the necessity of a national fiscal pact, urging provinces to take greater responsibility for revenue collection and expenditure reduction. Currently, the federal government bears the majority of expenditure burdens, and it is imperative for provinces to contribute to this effort. Malik’s call for a national fiscal pact highlights the need for a collaborative approach to fiscal management and responsibility.
In his address, Malik criticized the previous government led by Imran Khan for damaging Pakistan’s relationship with the International Monetary Fund (IMF). He accused the Imran government of undermining this relationship by providing unfunded fuel subsidies, which sowed seeds of mistrust between the IMF and Pakistan. Malik stated that repairing this relationship is crucial for the country’s economic stability.
