Islamabad (National Times) Finance Minister Muhammad Aurangzeb on Sunday said that tax filers for the current fiscal year had nearly doubled as compared to last year, stating that around 723,000 new filers have registered themselves.<\/p>\n\n\n\n
On September 20, Prime Minister Shehbaz Sharif approved drastic measures for tax enforcement and compliance, including a ban on all banking and financial transactions for non-filers of tax returns.<\/p>\n\n\n\n
\u201cI think it is important that we, as a government, are walking the talk,\u201d he said during a press conference held in Islamabad along with the Federal Board of Revenue (FBR) chairman.<\/p>\n\n\n\n
\u201cThis also shows our resolve as we go forward.\u201d
The finance minister said that the FBR chairman had presented a report to the prime minister on non-filers and underfilers. On this, he stated that the estimated tax evasion of individuals who underfile amounted to Rs1.3 trillion.<\/p>\n\n\n\n
\u201cI think I\u2019ve already talked about that we have to declare war on cash in this country,\u201d he said. \u201cWhen we talk about [going] in G20, we will only go in the G20 if all this goes in documented economy.\u201d<\/p>\n\n\n\n
He said that since the estimated amount for cash-in-circulation was around Rs9 trillion and the FBR budget was Rs9.3 trillion, one could estimate that the actual size of the country\u2019s economy stood at more than $700 billion.<\/p>\n\n\n\n
As for non-filers, the finance minister emphasised that \u201cthey will not be able to, going forward, buy vehicles, properties, mutual funds, and [open] current bank accounts \u2014 they will have difficulties in cash withdrawals and deposits\u201d.<\/p>\n\n\n\n
For under filers, he stressed the government will reduce human intervention by creating a digital interface. Through digital algorithm, he said, the government will gauge the difference between what people have declared and the actual value of their assets.<\/p>\n\n\n\n
He added that such measures were important for citizens\u2019 rights so that tax collectors would not go and \u201charass them\u201d.<\/p>\n\n\n\n
\u201cLook, this data was always there with us,\u201d he said. \u201cOn me, there was always a lifestyle [data] on how many cars [and] houses I have and how many foreign trips I go on in a year.\u201d<\/p>\n\n\n\n
\u201cAll we are doing, ladies and gentlemen, is now making sure that we use this data the correct way to get our tax-to-GDP ratio up,\u201d he highlighted.<\/p>\n\n\n\n
Regarding inflation and its downward trajectory, he said that it was down to single digits and was going to \u201csubside more\u201d, adding that happened on the back of the successful completion of the stand-by agreement with the International Monetary Fund (IMF).<\/p>\n\n\n\n
Aurangzeb noted that a new and extended IMF programme was critical to bring permanence to the macroeconomic stability in the country and execute structural reforms.<\/p>\n\n\n\n
The IMF Executive Board\u2019s formally approved the 37-month $7billion Extended Fund Facility agreed in July \u2014 its 24th IMF payout since 1958 \u2014 in exchange for unpopular reforms, including widening its chronically low tax base.<\/p>\n\n\n\n
The prime minister and the finance minister have in the past stressed that this will be the last IMF programme the country takes on.<\/p>\n\n\n\n
During today\u2019s presser, the finance minister reiterated that claim, stating that the need to bring macroeconomic stability to be critical if this if \u201cwe are going to have this as a last programme\u201d.<\/p>\n\n\n\n
\u201cBecause this isn\u2019t a theory anymore, we are seeing the results of this macroeconomic stability,\u201d he said, adding that reforms in the energy and privatisation side were taking place.<\/p>\n\n\n\n
On rightsizing, which the finance minister heads, he highlighted that six ministries were currently being ratified with the aim to reduce federal expenditures.<\/p>\n\n\n\n
\u201cAnd they have been ratified by the cabinet and the prime minister,\u201d he added, \u201cOut of six there is one ministry [Capital Authority] that is being abolished\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
Islamabad (National Times) Finance Minister Muhammad Aurangzeb on Sunday said that tax filers for the current fiscal year had nearly doubled as compared to last year, stating that around 723,000 new filers have registered themselves. On September 20, Prime Minister Shehbaz Sharif approved drastic measures for tax enforcement and compliance, including a ban on all […]<\/p>\n","protected":false},"author":2,"featured_media":90502,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-90501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","entry"],"yoast_head":"\n