 "Pakistan’s Tax Battle: Finance Minister Urges Traders Amid Protests")
Pakistan’s Finance Minister Muhammad Aurangzeb recently urged traders to comply with tax regulations to help strengthen the country’s struggling economy. During a press conference in Islamabad, he highlighted that while the government’s tax revenue rose by 29 percent last year, the tax-to-GDP ratio remains low at 8.8 percent, far from the sustainable target of 15 percent. Aurangzeb called on retailers and wholesalers to support the government’s new Tajir Dost Scheme, which aims to include millions of retailers in the tax system. He also noted positive economic indicators, including a decrease in inflation and upgrades to Pakistan’s credit ratings by global agencies. The government faces challenges in convincing traders to accept the new tax initiative amid protests.
Title: Pakistan Faces Economic Challenges as Traders Resist New Tax Scheme
Pakistan’s Finance Minister, Muhammad Aurangzeb, recently urged traders to contribute to the nation’s tax revenue in order to stabilize its struggling economy. Speaking at a press conference in Islamabad, Aurangzeb addressed the ongoing protests by traders against the newly introduced Tajir Dost Scheme, which aims to include over 3.5 million retailers in the tax system. The scheme mandates a fixed tax for traders and wholesalers, but many have expressed their discontent and have staged strikes.
Despite a notable 29 percent increase in tax revenue last year, Aurangzeb emphasized that Pakistan’s tax-to-GDP ratio sits at a low 8.8 percent. He stated that achieving a more sustainable level of at least 15 percent is crucial for the country’s economic health. “No country can thrive at this level,” he remarked, highlighting the need for collective responsibility among wholesalers, distributors, and retailers.
In more encouraging news, the Minister pointed out that inflation has slipped to single digits, which may lead to a potential reduction in the State Bank of Pakistan’s policy rate. He also noted significant improvements in remittances and credit ratings, with global agencies Fitch and Moody’s recently upgrading Pakistan’s ratings. Aurangzeb emphasized the importance of achieving macroeconomic stability as fundamental for long-term growth.
As the government grapples with convincing traders to comply with the new tax system, Aurangzeb’s call for unity and responsibility remains critical. The future of Pakistan’s economic recovery may depend on the cooperation between the government and the retail sector.
Tags: Pakistan economy, tax revenue, Muhammad Aurangzeb, Tajir Dost Scheme, traders protest, microeconomic stability, inflation, remittances, credit ratings
What did the finance minister of Pakistan say about taxes?
The finance minister urged traders to pay their taxes to help stabilize the economy.
Why is paying taxes important for the economy?
Paying taxes helps the government collect money needed for public services and improving the economy.
How can paying taxes help traders?
If traders pay taxes, it can lead to better government services and infrastructure, which can help their businesses grow.
What happens if traders do not pay taxes?
If traders do not pay taxes, it can create more financial problems for the country, leading to a weaker economy.
Is the government taking steps to encourage tax payment?
Yes, the government is encouraging tax payment by explaining its importance and may offer support to traders who comply.
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