Islamabad, Dec 4: Under the direction of Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, the National Tax Council (NTC) met today at the Finance Division. Key federal and provincial stakeholders convened the meeting to address important issues pertaining to harmonization and tax reforms.
Realizing the full revenue potential from under-taxed sectors, especially real estate, property, and agricultural income, was emphasized during the discussion, which took place in the framework of the recently signed National Fiscal Pact between the Federation and the Provinces.
Federal and provincial finance secretaries, the chairman of the Federal Bureau of Revenue (FBR), the finance ministers of Punjab, KPK, and Balochistan, and Minister of State for Finance & Revenue Ali Parvez Malik attended the meeting. Senior personnel from the Finance Division and provincial finance departments were also present, along with World Bank experts.
The meeting’s agenda was centered on encouraging cooperation between federal and provincial authorities in order to strengthen tax systems, increase revenue collection, and improve compliance. The main topics of conversation were:
Data Exchange and Digitization of Taxes
To improve tax collection efficiency, FBR and provincial revenue agencies should strengthen their information-sharing procedures, use cutting-edge data analytic tools, and use digital solutions.
GST harmonization
accelerating initiatives to move toward a single tax portal and standardize the General Sales Tax (GST) among provinces in order to improve efficiency and transparency.
Reforms to Provincial Taxes
examining proposals to improve property and agricultural income taxes, making sure they comply with federal regulations, and resolving current issues.
Expanded Tax Base
investigating methods to move the GST on services to a more comprehensive structure that is in line with global best practices in order to reduce uncertainty and enhance administration.
In order to accomplish lasting reform objectives, the Council underlined the significance of strong stakeholder engagement, capacity building, and coherent policy implementation. The potential of these policies to uphold national economic stability and encourage equitable growth was recognized by the participants.
In order to create a cohesive and effective tax system, Aurangzeb reaffirmed the government’s commitment to encouraging cooperation among all parties involved. The discussion ended with concrete recommendations for quickly advancing the measures that were addressed.
