The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, said on Saturday that Prime Minister Shehbaz Sharif’s decision to reduce ministries, departments, and government jobs is correct. He said the move would reduce the burden on the national exchequer and resolve many problems.
Mian Zahid Hussain said that the Prime Minister’s acknowledgement of the shortcomings in the tax system and decision to reduce taxes are also commendable because they will provide relief to the business community and the public.
Talking to the business community, the veteran business leader said that the government’s decision to abolish various ministries, merge several ministries and reduce government jobs would improve the system while reducing the burden on the government, which is why the business community supports it.
Mian Zahid Hussain said the Prime Minister knows the current tax system is an obstacle to the country’s development and business. The solution is to reform it without human intervention and implement an e-governance system in all sectors.
The Prime Minister has clarified that the promises made to the IMF will be fulfilled. When the time comes, he will say goodbye to the lender and prepare to work with everyone for economic development.
The business leader said that the Prime Minister has also noted that tax rates will be reduced in the coming time, which is encouraging as no country can run without taxes. He said that taxes are fundamental to running any country. Developed countries achieve economic and political stability due to efficient tax systems.
Mian Zahid Hussain said that due to the size of Pakistan’s economy, taxes worth Rs 4,000 billion are underpaid annually. Therefore, the tax system needs to be reviewed and reformed due to tax evasion, an increased tax base, and corruption.
Implementing new taxes and increasing old taxes to obtain loans from the IMF is a link in this chain, which is not yielding the expected benefits, and achieving the goals of the international financial institution has become a problem.
The Prime Minister is not only aware of the tax system’s inadequacies but also wants to remove them to reduce the burden of these direct taxes.
The Prime Minister has also sought suggestions from traders and industrialists for improving the tax system, which, if implemented, would greatly improve matters.
Mian Zahid Hussain further said that tax reforms are necessary to increase investment. The outdated system is a major obstacle to domestic and foreign investment. Reducing electricity tariffs and bringing bank markups to single digits is essential to recover economically. Improving systems, privatising, and improving laws are also very important.
The salaried class bears the heaviest burden in the current tax system, and the business community is also unhappy, so he said the focus needs to be on making the tax system acceptable to all stakeholders.
