Finance Minister Muhammad Aurangzeb confirmed that two provincial assemblies had approved legislation on the agriculture income tax, while progress was underway in Sindh and Balochistan. He assured that the International Monetary Fund (IMF) was aware of these developments and recognized the steps being taken toward tax reforms.
Speaking after a meeting of the Senate Standing Committee on Finance and Revenue, Aurangzeb stated that the federal cabinet had approved the separation of tax policy and revenue collection. From the next fiscal year, a dedicated policy unit would be established under the Ministry of Finance, while the Federal Board of Revenue (FBR) would focus solely on tax collection.Â
This transition marks the last time the FBR will formulate tax policy, aligning with IMF conditions.
The finance minister reiterated the government’s commitment to strengthening tax collection mechanisms, adding that the FBR’s transformation plan would ensure the inclusion of non-filers into the tax net. The tax-to-GDP ratio increased to 10.8 percent in the second quarter of the fiscal year, surpassing the targeted 10.6 percent, but remained below the IMF-mandated 13.6 percent.
The finance minister reiterated that the government was committed to implementing reforms, with agriculture taxation and revenue mobilization remaining key priorities.Â
He assured the committee that all necessary measures were being taken to enhance fiscal stability while ensuring transparency in administrative matters.
