Islamabad, December 26, 2024: Federal Finance Minister Muhammad Aurangzeb emphasized on Thursday the need to increase the tax-to-GDP ratio to ensure sustainable economic growth and stability.
Speaking at a press conference in Islamabad alongside State Minister for Finance Ali Parvez Malik and Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial, the finance minister stressed that tax reforms are vital for the economy. “Currently, the tax-to-GDP ratio is at 10%, and we aim to raise it to 13% within the next three years,” he stated.
He highlighted that the government is committed to integrating digitalization into FBR’s systems to enhance transparency and efficiency. “Structural reforms are ongoing, and the target to increase the tax-to-GDP ratio to 13% will be achieved within three years,” Aurangzeb assured. He further noted that the government plans to involve the public in the process by sharing steps and seeking their feedback.
Aurangzeb also underlined the government’s efforts to minimize the financial burden on the working class, emphasizing that digital transformation has been underway for months to streamline processes.
State Minister for Finance Ali Parvez Malik added that inflation, which had been a major pressure point for the working class, has significantly decreased from 40% to 5% due to the government’s diligent efforts. He acknowledged that further reductions in the budget deficit are crucial to sustaining this trend and expressed optimism that citizens would soon experience the benefits of lower inflation.
FBR Chairman Rashid Mahmood Langrial outlined the introduction of modern tools to enhance the tax system. He emphasized the need for collective responsibility in improving tax compliance and highlighted the focus on the top 5% of earners, who, he noted, have historically contributed insufficiently to the tax base.
Langrial concluded by emphasizing that all relevant institutions are collaborating with the FBR to strengthen the tax mechanism, ensuring a fairer and more efficient system for all.
