Daily Times

Members of the Senate Standing Committee on Finance have recommended imposing a ban on non-filers from purchasing cars and houses, highlighting concerns over tax evasion and economic fairness.

Chaired by Senator Saleem Mandviwala, the committee meeting featured Finance Minister Muhammad Aurangzeb, who emphasized increasing taxes on high-income earners and restricting privileges for non-filers to Umrah and Hajj only. Amid discussions, it was revealed that a significant portion of industry buyers are non-filers, prompting calls to integrate the export sector into standard tax regulations despite the associated challenges. Minister Aurangzeb addressed corruption concerns at the PWD, stressing the need to enhance the tax base beyond the current 9.5% tax-to-GDP ratio through comprehensive digital tax reforms and increased levies on higher incomes.

Proposals from committee members included bringing 31,000 retailers in six cities under the tax net from July, while also advocating for continued tax exemptions on electric cars and reduced taxes on mobile phones to stimulate usage. Aurangzeb acknowledged challenges such as tax leakage amounting to billions annually but expressed plans to implement a robust track and trace system to combat evasion effectively. Despite deliberations, industry representatives criticized the budget, citing concerns over increased sales taxes and insufficient support for exports, advocating for reduced electricity tariffs to boost competitiveness. The ongoing discussions reflect efforts to bolster fiscal discipline and economic recovery amidst varied stakeholder opinions on budgetary measures.