Finance Minister pledges tax relief by expanding the tax base

Finance Minister Muhammad Aurangzeb stated on Friday that the government remains dedicated to alleviating the unequal tax burden on specific groups by expanding the tax base.

Speaking on the Geo News programme ‘Aaj Shahzeb Khanzada Kay Saath’ after presenting the Rs18.8 trillion budget for the upcoming fiscal year, Aurangzeb said: “We have provided relief to exporters, manufacturers, the IT sector, construction firms, and the salaried class. The direction of travel is now clear, and we will continue to reduce the disproportionate tax burden by broadening our tax net.”

Addressing inquiries about concrete steps to expand the tax net and improve compliance, the finance minister explained that the government must pursue a two‑pronged approach: deepening and broadening the tax base.

“By deepening, I mean we must plug loopholes, combat corruption and tax evasion through stronger compliance and enforcement. I am confident this will yield substantial benefits,” he said.

“The government must also take structural steps to broaden its tax net,” he added.

Discussing the provinces’ share and the proposed cut in development funding, Aurangzeb noted that Khyber Pakhtunkhwa and Balochistan were experiencing internal instability, and emphasized: “It is essential to strengthen security forces, particularly the civil armed forces, which is why we have requested provincial contributions.”

The minister also expressed gratitude to all provincial governments for their cooperation with the federal authorities in implementing strategic measures.

Aurangzeb further emphasized that no new taxes were announced for the forthcoming fiscal year.

He acknowledged the challenges faced by the Federal Board of Revenue (FBR) and said he is working to replace traditional workflows with AI‑driven mechanisms that require zero human intervention.

Regarding the ongoing geopolitical tensions involving the United States, Israel, and Iran, Aurangzeb expressed hope that the initiatives of Prime Minister Shehbaz Sharif and Field Marshal Asim Munir will succeed, though he warned that the economic repercussions of the conflict will persist into the next fiscal year.

During the budget presentation in the National Assembly earlier today, the minister said the budget for the coming year was crafted with a clear, purposeful strategy, prioritising increased production capacity and export promotion.

“To achieve this, we are granting tax concessions to large industries and providing resources to exporters through the Export Financing Scheme,” he added.

The finance minister reiterated that the government aims to raise revenues through enhanced tax enforcement and compliance rather than imposing additional burdens on citizens, and noted that reforms to the FBR’s compliance and enforcement mechanisms are underway.

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