ISLAMABAD: The Federal Minister for Finance, Mohammad Aurangzeb has announced good news for workers in the low-income group by declaring a massive drop in the income tax that is deducted from this group.
According to the private news channel report, Mohammad Aurangzeb had said that income tax reductions have been made for those who have low incomes and that the government will look after other employees who are on the payroll.
He further indicated that the World Bank had given its seal of approval to Pakistan’s pitch on tax reforms. Collecting taxes from wholesalers and retailers was doubled last year, showing the effectiveness of these reforms.
Minister Aurangzeb remarked that it was the digitization that had brought about the increase in tax revenue. He said that although some companies had moved due to decisions taken at a global level, the overall digitization of the economy had actually reduced the extent of the informal sector.
The finance minister, while talking about Pakistan’s economic turnaround, said that “with the economy becoming stable, we have been able to save a $4 billion reserve in the last two years.”
Besides these, he mentioned the factor of climate change gradually becoming a bigger challenge. The frequency of floods and smog, he said, was on the rise and hence, affecting the economy as well.
It is the changing climate that is causing floods and smog more often these days, he stressed when explaining how these issues harm the economy of the country.
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He concluded by saying, “We are now able to stand on our own two feet, and we can undertake rescue and relief operations by using our own resources. If there is a need for rebuilding, we will take help from international agencies.”
