Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin urged the public on Monday to make it clear that they can not get away with evading taxes, while adding that those not paying their taxes should not be allowed to cast votes.
While addressing the Kamyab Jawan Convention in Islamabad as the chief guest, Tarin revealed that the government would abolish all taxes except the general sales tax (GST) and income tax in the years to come.
Tarin told the gathering, jointly organised by the Islamabad Chamber of Commerce and Industry (ICCI) and the Kamyab Jawan Programme that “[When] the German finance minister came to meet me, she said ‘no representation without taxation’. If you don’t pay taxes, you don’t have the right to representation or vote either.”
Tarin went on to elaborate that people refuse to pay taxes because they believe that the government did not provide any facilities in return, however, such people must keep in mind that they use roads, electricity, and benefited from the maintenance of law and order, the army defending them at the borders and the police.
He added that taxes such as withholding and turnover tax would be scrapped in the next 2-3 years.
“Where will all this [money] come from? So forget that there will be no tax. However, we will simplify [the tax regime]. There will only be two taxes — income tax and consumption tax (GST),”
Tarin said the government now had all the data of tax evaders, including their bills, bank accounts and information about travel, cars and houses, which it would use to estimate such people’s income through artificial intelligence as well.
“You will get a bill saying this is your income and this is the tax due,” he said, emphasising that authorities would not use any force but request people to pay their dues if they thought they had been accurately calculated, while adding that “It is the state’s right to receive tax”
The adviser said he had also straightforwardly told traders from across the country at a meeting last week that “we all have to pay the tax. If you think we will not, then our country will not progress.” However, later he assured government facilitation for the traders, saying he had put an end to “harassment” at the hands of the Federal Board of Revenue and that in case of any disputes, third-party audits would be carried out.
Tarin further noted that the current tax-to-GDP ratio in Pakistan was nine per cent which was very low and needed to be doubled to 20pc, and raising the ratio to 20pc could improve the growth rate and provide employment opportunities to the youth.
He further stated that in the 1960s, “we were counted among economies like China and Japan, when we were economically strong,” he recalled, adding that the government was focusing on human resource capital and small and medium enterprises (SMEs), which would be its top priority going forward.
Tarin went on to state that the country could not move forward without empowering its youth, which accounted for 60pc of the population.
He cited the provision of interest-free loans, skills development courses for young people, agricultural loans, home loans in easy instalments and health cards as steps in this direction.
Earlier, advisor to the Prime Minister on Finance and Revenue Shaukat Tarin has said that the government is determined to uplift the living standards of people and ready to provide necessary support and resources to Punjab.
The advisor on Monday held a meeting with the Finance Minister of Punjab Makhdoom Hashim Jawan Bakht at the Finance Division. Secretary Finance Division, Finance Secretary Punjab and senior officers participated in the meeting.
Adviser to the Prime Minister and Punjab Finance Minister discussed various aspects of promoting progress and prosperity in ex-FATA districts and allocation of 3% provincial share to a divisible pool for carrying out development initiatives in ex-FATA districts.
Punjab Finance Minister Makhdoom Hashim Jawan Bakht apprised that the Punjab government is ready to play its role and contribute to the development of ex-FATA districts with a clear perspective of the actual amount of share for Punjab province.
Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin emphasized that a meeting of the subgroup of NFC may be convened to discuss and settle the issue of allocation of 3% provincial share at the priority.
Later, Punjab Finance Minister Makhdoom Hashim Jawan Bakht gave a detailed presentation on various reforms and initiatives being carried out in the province for the welfare of people and good governance.
Makhdoom Hashim Jawan Bakht appreciated the Federal government for providing all-out support and requested the federal government to play its role in solving various financial issues being faced by the Punjab government.
