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Thursday, February 15, 2024

Pakistan witnesses 12% increase in tax filers under PTI Govt

However, only 1.3 percent file tax returns from about 3 million tax filers. Though the government is incentivizing the system for tax filers.

Special Assistant to Prime Minister for Political Communication, Dr Shahbaz Gill on Sunday said, the number of tax filers had increased by 12 percent in the country.

Responding to a statement of PML-N central leader, Maryam Aurangzeb, he said, those who looted the national exchequer were fighting case of the tax evaders.

The taxpayers were not encouraged in the past, he said adding, those who looted the national wealth backed the tax evaders.

Read more: PTI govt poised to achieve Rs5.8 trn tax target

He said, out of 220 million population of the country, only 1.3 percent file tax returns, adding, there were less than 3 million tax filers in the country while of these 3 million, 1 million show zero income.

Countries thrive on tax payments, he said and informed that 80 percent population of Canada pays taxes. Similarly, 58 percent of the population in European countries was tax filers, he added.

Read more: FBR investigating Rs. 197,714 million tax evasion matters

From July 2020 to May 2021, 18 percent more tax was collected in Pakistan, Shahbaz Gill said and added that the number of tax filers had increased by 12 percent in the country.

Stabilizing the financial situation

The State Bank of Pakistan has responded in a timely manner by implementing proper monetary policy. The initiatives were targeted at lowering the policy rate and introducing a variety of methods to help small firms enhance their liquidity.

In the aftermath of the COVID-19 crisis, it has implemented a number of other temporary and time-limited interventions to guarantee monetary stability and financial system functionality.

Additional resources have been mobilized through various international financial institutions such as the IMF, World Bank, and ADB to cover the financing needs for these expenditures. The administration is constantly evaluating the situation in the country, and extra measures are being taken as needed to fulfill the new demands.

Read more: Pakistan needs to increase tax compliance, not new taxes: World Bank

The current administration in Pakistan is working to implement a tax structure that not only generates enough revenue to meet the government’s needs but also promotes fairness and equity in taxation, lowers the burden of high taxes that distort economic incentives, improves tax enforcement, and promotes efficient and responsive tax administration.

FBR has proposed a number of reforms, special initiatives, and steps all of which are connected with advances in sectoral policies for the benefit of taxpayers. These activities are expected to yield positive outcomes as increased revenue collection, in keeping with attempts to make it easier for taxpayers to achieve the best possible results.

APP with additional input by GVS News Desk