Pakistan's FY2027 Budget Termed 'Positive and Relief-Oriented'

Information Minister Attaullah Tarar on Wednesday termed the federal budget for the upcoming fiscal year (FY2027) as "positive and relief-oriented." He made these comments during a media briefing where he was accompanied by State Minister for Finance Bilal Azhar Kayani.

Tarar reflected on past economic challenges, stating that Pakistan's macroeconomic indicators were at their lowest when the PML-N leadership, guided by the vision of Nawaz Sharif, stepped in to stabilize the economy. He added that Prime Minister Shehbaz Sharif's government has consistently worked to create and implement relief measures through a home-grown plan over the last two years.

The minister detailed significant reforms within the Federal Board of Revenue (FBR), addressing issues such as stalled digitisation, corruption, and a lack of coordinated tax collection. Prime Minister Shehbaz Sharif, Tarar noted, directed that FBR officials be hired on merit. A "faceless system" has been introduced in tax offices and ports, allowing for export shipment clearances within days without direct interaction with customs officials, aiming to eliminate demands and delays.

Efforts to broaden the tax net included targeting industries like sugar, beverages, cement, and tobacco, which were reportedly earning significant profits but not adequately paying taxes. Tarar highlighted PM Shehbaz's initiative to install cameras and IT systems in sugar mills to monitor production and sales, with every bag traceable by a QR code. This measure alone reportedly led to the collection of Rs60 billion in taxes from sugar mills. In the tobacco industry, a Rs200 billion leak was addressed by halting illegal trade and conducting raids, with similar actions being taken for the beverage and cement sectors.

Regarding tax collection and dispute litigation, new tribunals have been established and a new chairman appointed, facilitating the recovery of several billion rupees and the vacation of stay orders. The law ministry and attorney general were instructed to ensure 100 percent recovery. Tarar stated that in the past year, at least Rs800 billion was received through enforcement, attributing this development to PM Shehbaz's personal efforts, independent of Pakistan’s International Monetary Fund program.

The budget also introduces several relief measures. For the salaried class, a 1% tax will apply to those within the Rs50,000 to Rs100,000 bracket, with reductions for higher income slabs. Taxes have also been reduced for individuals purchasing houses of five to ten marlas, and Rs90 billion has been disbursed under the "Apna Ghar" scheme. Exporters will benefit from the abolition of the previously applicable advance tax and super tax. State Minister Kayani reiterated these points, adding that the 'pink tax' has been abolished and that the budget aims to provide relief to the industrial sector, construction, and youth.

(Source: Dawn Pakistan)