Finance Minister Muhammad Aurangzeb Tuesday admitted the disproportionately high burden on Pakistan’s salaried class and hinted at a revision of the current tax slabs.
“This is my personal view, that indeed, on the salaried class side, there is a disproportionately high burden,” the minister said while speaking at the event titled “Dialogue on the Economy”, organized by the Pakistan Business Council (PBC).
The minister said that there is a need to think about the tax slabs but added that he cannot make any commitment in this regard. He also informed the audience that the government wants to simplify the process of filing tax returns for the salaried class.
The finance minister emphasized that the country’s economic indicators are moving in the right direction.
Referring to Monday’s Monetary Policy Committee’s (MPC) decision, the minister said that the KIBOR rate has come down to around 11 percent. He said that the reduction in interest rates would improve business confidence.
Commenting on central bank’s projection of hitting $13 billion foreign exchange reserves by the end of the current fiscal, the minister described it as a very important milestone as it would take the country to around 3 months of import cover.
“If all goes well, this is a critical trigger for the economy and the sovereign being re-rated to a single B category,” the minister said.