Finance Minister Senator Muhammad Aurangzeb dismissed objections regarding taxes on the salaried class, stating that higher incomes would be subjected to higher taxes, and no one should object to this.
In a post-budget press conference, Finance Minister Muhammad Aurangzeb said that the tax base needs to be expanded. A 10% tax-to-GDP ratio is unsustainable, and it needs to be raised to 13%, which requires improving various institutions.
Muhammad Aurangzeb mentioned that the informal economy is being digitized. He acknowledged that tax compliance and enforcement have not been adequate, but end-to-end digitization is being implemented.
Digitizing the economy is a priority, which will reduce corruption and increase transparency.
He further stated that the concept of non-filers is perhaps unique to this country. The tax rate for non-filers has been increased, and business tax transactions for non-filers are also being increased to bring them into the tax net.
Higher incomes will be subjected to higher taxes, and no one should object to this, noting that the maximum tax rate for the salaried class is 35%.
