Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, announced on Friday that tax exemptions have been retained for medical surgery equipment, as well as other health and education-related items.
He further stated that the tax exemptions will continue for cardiology stents, cardiology surgeries, school books, printing materials, and for areas previously under the Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA).
Meanwhile, participating in the discussion on the budget 2024-25, in the National Assembly, he said “We all need pure milk for the good health of the people, but tax exemption cannot be given on packed milk which is not according to the health standard.”
Aurangzeb said that the tax exemption for education and health was given in very difficult economic conditions. The minister said that teacher research has also been given tax exemption which has also been given in the finance bill 2024-25.
He said that tax exemption has also been made in the agriculture and fertilizer sector to provide relief to the farmers. He said that there were high taxes on the salaried class which have been normalised now.
The minister said “We need to increase tax to Gross Domestic Production (GDP) to 13%, which currently stands at 9.5%. If the country wants to move towards Self-Reliance and go to the last program of the International Monetary Fund (IMF) then revenue collection needs to be enhanced.”
The minister said that the government is committed to going for reconstruction and digitization of the Federal Board of Revenue (FBR) to increase tax to GDP to 13 per cent. He said that there will be no category of non-filer in the tax system and everyone will have to pay tax.
He said that if people want relief, then, these economic measures will have to be taken and in this budget 2024-25 the government has given record allocation to potential Information Technology and Agriculture Sectors.
Aurangzeb said that tax evasion will be stopped, and the tax net will be increased for retailers and the real estate sector in the country.
