Aurangzeb vows to continue with tax reforms, rightsizing for macroeconomic stability

Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb here on Tuesday reaffirmed the government’s resolve to carry forward the reforms agenda, aiming at broadening of the tax base and rightsizing of the federal government to achieve macroeconomic stability what he called ‘basic hygiene’ for sustainable growth.

In a televised message, the minister said 43 percent of sectors in the economy were paying less than 1 percent tax, curtailing the tax to GDP ratio to as low as 8.8 percent adding that this ratio needed to be lifted up to over 13 percent.

The minister requested all the potential taxpayers to come forward and contribute in country’s economy. He particularly requested wholesalers, retailers and distributors to contribute in the economic uplift of the country, adding the government would try its best to bring simplicity in tax system and accommodate their recommendations.

However, the minister stated in clear terms that government was not going to take back its decision as it would be counterproductive and create difficulties for other sectors. “One thing I want to be very clear, this is not going to be taken back, because if we do this, the other sectors, who are annoyed, would go in further difficulties.”

The minister, who is also Chairman of High-Powered Committee on Rightsizing of the Federal Government, also expressed resolve to right-size different ministries and autonomous bodies to bring down the size of federal government.

He said six ministries have been given two weeks to prepare implementation plan for rightsizing, keeping in view their employees, resources, properties and litigation matters. “Once the programme is executed, other ministries would be taken for the same process.”

He said, ministries and autonomous bodies were given opportunity to share their performance and justify what they have contributed in national economy. He said, the government would need to bring legislative changes in Civil Servant Act 1973 with the help of coalition partners to carry forward the rightsizing process smoothly.