ISLAMABAD – Prime Minister Imran Khan Wednesday stressed the need forrevenue and tax collection as key drivers for the economic stability andnoted that Federal Board of Revenue (FBR) had significant role in thisregard.
Addressing a gathering of taxmen of FBR, he said the countrymen weregenerous in charity giving, but shirk of paying taxes and urged the FBRofficials to devise reforms which could restore peoples’ confidence in thetax machinery besides, enhancing their performance coupled with easy taxpayment system.
The prime minister also assured the FBR officials that they would be fullytaken on board on tax reforms as their role had been crucial in thecountry’s economic stability.
He said Pakistan had been at the historical crossroads and his governmentwas committed for reforms in the revenue and tax systems which had alreadybeen started.
The government through holistic approach had been introducing all bracingreforms, with exports witnessing a surge and the stock exchange was gainingmomentum, he added.
The prime minister also expressed his satisfaction over the country’senhanced performance in the ease of doing business as its business outlookhad been enhanced by seven per cent.
He asked the FBR authorities to give their input and feedback on the taxcollection.
Special Assistant to Prime Minister on Information and Broadcasting DrFirous Ashiq Awan, Adviser on Finance Dr Hafeez Shaikh, FBR chairmanShabbar Zaidi, Adviser on Commerce Abdul Razak Dawood and senior officialswere present during the interaction.
The prime minister said without efficient functioning of the FBR, thecountry could not achieve the financial stability.
He said the country could not run on the old pattern as the presentgovernment had inherited the biggest financial deficit and current accountdeficit. Half of the tax collection, in the first year, was spent on debtservicing, he added.
He said collection of Rs8 trillion tax was not difficult, unless all thestakeholders considered it as their national responsibility and sacred dutyto work for the achievement of this task. The tax collection during thefiscal year was targeted at Rs5.5 trillion.
The prime minister observed that if steps for the collection of enhancedtax were not taken, it could give rise to complications in the future asthese were also vital for the human resource development.
The country had huge potential in terms of its young population and if theywere provided with opportunities, the country could progress on path ofprogress and prosperity, he added.
He said the China Pakistan Economic Corridor (CPEC) had entered intoanother phase which would spur industrialization and business opportunitiesacross the country.
The prime minister also cited the Scandinavian countries including Swedenand Norway where the people had been paying taxes as they knew that thesewere spent on their welfare judiciously.
A woman in Sweden could not contest for the prime minister’s office as shehad spent the public money, he added.
He regretted that in Pakistan, the past rulers took it as their prerogativeto spend the public tax money on their personal requirements.
He said his government after coming into power started an austerity drive,and cut down Rs350 million expenditures of the Prime Minister House,besides, the federal government’s expenditures were slashed by Rs45billion.There was also a ban on traveling of ministers’ abroad, he added.
The prime minister said the government entities including the governors’houses were being converted into the public places, thus bringing downtheir expenditures and cited the Governor House in Murree where a sum ofRs830 million alone was spent in the past over its renovation.
He expressed the resolve that his government would spend the public moneyon the welfare and uplift of the public.
He said his recent Washington visit only cost $65,000 as compared toprevious visits by Asif Ali Zardari and Nawaz Sharif who spent $0.8 millionand 0.7 million respectively.
The prime minister said during the United Nations visits, Asif Ali Zardarispent $1.2 million, Nawaz Sharif $1.1 million, Khaqan Abbasi $800,000whereas his visit only cost $160,000.
A huge amount of Rs50 billion was spent on advertisement by the previousrulers from the public tax money, he added.
The prime minister said the nationalization policy of 70s had also impactedthe growth rate of the country in which wealth creation was considered asoffence.
He said the government was determined to provide business climate in thecountry through ease of doing business.
He also credited the overseas Pakistan who had been the biggest asset ofthe country sending remittances regularly thus strengthening the nationaleconomy.
The prime minister also responded to various queries and suggestions by theFBR officials.