aurangzeb announces increased taxes for high income earners
Published on: June 14, 2024.
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Finance Minister Muhammad Aurangzeb announced on Thursday that higher taxes will be imposed on high-income earners in the next fiscal year. He also criticized the concept of non-filers and emphasized the need to eliminate this category.
During a meeting of the Senate Standing Committee on Finance and Revenue in Islamabad, chaired by Senator Salim Mandviwala, Finance Minister Muhammad Aurangzeb addressed concerns about the new budget. A representative of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) expressed concerns about the allocation for industry and exports in the budget. He specifically mentioned that the income tax on rice exports had increased from 1 percent to 29 percent, which could potentially lead to increased under-invoicing.
Additionally, the representative highlighted that the sales tax had increased across various sectors, causing concerns about its impact. He also urged the government to reduce power tariffs.
In response to these concerns, Finance Minister Aurangzeb emphasized the importance of increasing the tax base. He stated that the country cannot rely on a tax-to-GDP rate of 9.5 percent and announced plans for the digitalization of taxes throughout the country.
Furthermore, the finance minister announced that non-filers will not be able to travel to London, Paris, and Thailand without an NTN number, with exceptions only for Umrah and Hajj.
This move aims to strengthen tax collection and ensure that high-income earners contribute their fair share towards the country’s development.
Source: [Propakistani](https://propakistani.pk)
