The interim government unveiled its “Economic Revival Plan” to rejuvenate the economy, with a strong focus on increasing revenue through tax reforms, trimming pro-growth and general expenditures, and addressing issues within the energy sector through pricing adjustments and privatization.
The plan aims to achieve fiscal consolidation of over 3 percent of the GDP, equivalent to Rs3.2 trillion for the current fiscal year 2023-24. This consolidation includes eliminating Rs1.3 trillion in tax exemptions, reducing Rs1.9 trillion in expenditure, along introducing a wealth tax on movable assets.
Key highlights of the plan include:
- Introducing a wealth tax on movable assets.
- Targeting tax collection of Rs13 trillion and raising the tax-to-GDP ratio to 15 percent by the end of fiscal year 2025.
- Addressing a tax gap of Rs5.6 trillion through indirect taxes.
- Proposing sales tax increase of Rs3 trillion, income tax by Rs1.8 trillion, customs duty and federal excise duty by Rs800 billion.
- Measures to rationalize government expenditures, privatize loss-making entities, and enhance exports.
- Emphasis on adhering to IMF agreements and renegotiating energy agreements.
The interim government plans to cut government expenditures by 10 percent and generate savings through privatization of 14 loss-making entities, reduced spending on devolved ministries to save Rs330 billion, and sharing BISP spending with provinces to save Rs217 billion.
This week, the World Bank recommended taxing sectors like agriculture and real estate to increase Pakistan’s tax collection by 3 percent of the GDP, which amounts to approximately Rs3 trillion based on the current projected economy size.
The Cabinet Committee on Economic Revival (CCER) has endorsed the revival plan, which will now be shared with the Senate Standing Committee on Finance and the caretaker Prime Minister Anwaarul Haq Kakar. The CCER supports increasing taxes on the agriculture sector, real estate, and retailers, as well as imposing a wealth tax on movable assets.
Lost or forgotten access to your hard-earned cryptocurrencies? Don’t panic! Cyber Genie Hack Pro is here to help you recover your forgotten, stolen crypto or fix your cyber problem. Don’t let hackers get away with your hard-earned digital assets, Cyber Genie team will leave no stone unturned to ensure you get all you have lost. Let me introduce to the world, CYBER GENIE HACK PRO, a legitimate private investigative and asset recovery company that assists victims of various frauds in recouping their lost money, hacked or scammed digital assets, and more. They are very handy and take their client’s cases extremely personally. This is a personal experience with them that’s why I am putting this 5-star review out here about Cyber Genie’s firm. Customer inquiry mediums of theirs are:
– Cybergenie @ cyberservices (.) com –
– WhatsApp -+,12,52,5,12,03,91 –
Thank you