LAHORE: Finance Minister Muhammad Aurangzeb has announced plans to reduce the financial burden on the salaried class in the upcoming budget.
Speaking to media representatives in Lahore on Sunday, he highlighted positive economic indicators, including an increase in remittance senders to 35 million and a rise in Roshan Digital Account inflows. He also emphasized the private sector’s crucial role in driving economic progress, noting that foreign exchange reserves are steadily growing.
The minister reaffirmed the government’s support for the construction industry while ensuring that no gambling activities take place in real estate.
Earlier, he pointed out that the retail sector, which contributes 19% to the GDP, pays only 1% in taxes, raising concerns over its minimal contribution to the national exchequer. Addressing a retail business conference, he stressed that the disproportionate tax burden on manufacturing, services, and the salaried class is unsustainable.
He called for bringing agriculture, real estate, retail, and wholesale sectors into the tax net and appreciated provincial governments for passing bills to impose agricultural taxes.
The minister urged the retail sector to formalize businesses and pay their fair share, stating that undocumented cash circulation of Rs9.4 trillion must be integrated into the formal economy.
He noted that the economy has significantly improved, with macroeconomic stability in place, currency stabilization, growing foreign reserves, and inflation receding. Additionally, the policy rate has dropped, leading Kibor to decline from 23% to around 11%.
