Tax base expansion, lower policy rate to boost investment: Aurangzeb

SIALKOT: The country’s economy is moving towards “stability,” said Finance Minister Aurangzeb during a meeting at the Sialkot Chamber of Commerce on Thursday. He stated that inflation and interest rates have declined, bringing much-needed relief.

The minister highlighted that the government is taking steps to broaden the tax base, ensuring more people and businesses are brought into the tax net. He said that a reduction in the policy rate is likely to lead to increased investment, further boosting the economy.

Aurangzeb also pointed out that taxes are also being deducted from the salaried class and assured that the government does not intend to impose any additional tax burden on industrialists.

The Finance Minister responded to questions from the Sialkot business community, which raised multiple concerns regarding taxes and shared the challenges they face in doing business.

On Wednesday, the government introduced the “Tax Laws (Amendment) Bill, 2024” in the National Assembly, aiming to tighten measures against non-filers and generate financial resources for economic development.

The Finance Minister presented the bill to the House, where the Speaker subsequently referred it to the Standing Committee on Finance and Revenue for further review.

The “Tax Laws (Amendment) Bill, 2024” proposes that non-filers will be restricted from purchasing, booking, or registering vehicles over 800cc, acquiring property beyond a specified value, and making stock purchases above a certain limit.

In addition, non-filers will be barred from opening bank accounts, and restrictions will be placed on the number of banking transactions they can carry out. However, they will still be permitted to purchase motorcycles, rickshaws, and tractors.

The bill also imposes restrictions on certain economic transactions. For instance, entities authorised to sell securities, such as debt securities or mutual fund units, and those authorised to open and maintain accounts, will be prohibited from selling or clearing transactions for ineligible individuals or associations of persons.

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