Countries are run by taxes not charity: Finance Minister

• The finance minister stressed that taxes are vital for running the country.
• He emphasizes that the burden of taxation shouldn’t fall solely on one class.
• The inflation is at 17% which is anticipated to decline further.

ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb on Tuesday said that taxes are an integral part of the economy not by charity. He added that tax should not be imposed only on one class.

Accompanied by federal ministers Atta Tarar and Azam Nazir, Mr. Aurangzeb how can the country run with 9 percent tax to GDP ratio. He said that the country should be run on taxes while schools and hospitals can eb run on charity.

While talking about SIM blockage, he said that foreign investors are angry on closure of SIMs. He also said that those who are paying 10,000 PKR mobile bill should also pay tax return. He said that it is necessary to stabilize the tax system to run the country.

Mr. Aurangzeb stressed the importance of IMF program that will be beneficial for the national economy. According to him, the IMF mission will visit Pakistan in the next 7 to 10 days.

While talking about inflation, Finance Minister Aurangzeb said that it is now at 17% and is expected to further decline and the policy rate is also anticipated to go down by July-August 2024. He stressed on reducing the expenditure on non-developmental matters.

He said that steps have to be taken to bring pension expenditure under control and infrastructure reforms are part of agenda while digitalization of FBR is also in progress.

Azam Nazeer Tarar, Federal Law Minister, said that political stability is connected with economic stability, pension reforms are being discussed, a large part of the annual expenses goes to the pension of retired employees.

On this occasion, Information Minister Atta Tarar said that a committee has been formed on pension reforms which will consider the proposals and inform the public about the pension reforms.