KARACHI, PAKISTAN: Finance Minister Muhammad Aurangzeb has underscored the need to incorporate the wholesale and retail sectors into the tax net, asserting that effective governance requires equitable tax contributions from all sectors. He assured small traders that the government would provide maximum support and facilitation during this integration process.

The remarks came during a meeting held at the Finance Ministry with trade representatives and senior government officials. Among those present were Federal Minister Rana Sanaullah, State Minister Ali Pervez, and Federal Board of Revenue (FBR) Chairman Rashid Langrial. Naeem Mir, Chairman of the Supreme Council All Pakistan Traders Association, joined the discussion via video link from Lahore.

In his address, Aurangzeb emphasized the critical role of a broadened tax base in strengthening the national economy. “To run the country effectively, everyone must contribute their fair share in taxes,” he stated. He highlighted that the wholesale and retail sectors, which make up a significant portion of the economy, remain largely undocumented. Bringing these sectors into the tax fold is essential for equitable resource distribution, he added.

The finance minister acknowledged concerns raised by small traders and assured that the government is committed to supporting them. He reiterated that facilitation measures, including simplified processes and potential tax relief for smaller businesses, would be prioritized to ensure a smooth transition into the formal tax system.

During the meeting, Naeem Mir commended the Federal Board of Revenue’s innovative approach to combating tax evasion through the use of data analytics and Artificial Intelligence. “The FBR’s modern tools align with Prime Minister Shehbaz Sharif’s vision of a digitized and transparent tax system, representing a clear shift from traditional methods,” Mir noted.

Business representatives expressed their willingness to cooperate with the government’s efforts to expand the tax network. They recognized the importance of reforms aimed at ensuring transparency and accountability, agreeing that a stronger tax system would benefit the economy as a whole.

This initiative follows recent discussions on broadening the tax net across various economic sectors, including agriculture, with plans to enforce agricultural tax collection starting July 2025. The wholesale and retail integration into the tax framework is expected to serve as a critical milestone in achieving fiscal sustainability and reducing dependence on external financing.

As the government moves forward with these reforms, the collaborative approach between policymakers and business stakeholders could pave the way for a more inclusive and robust tax system, strengthening Pakistan’s economic foundations.