Islamabad (TDI): Finance minister Muhammad Aurangzeb On Wednesday chaired a meeting of the National Tax Council (NTC), which brought together vital federal and provincial stakeholders to focus on critical matters related to tax reforms and harmonisation, the Finance Division said in a statement.
The Federation and provinces, recently, signed a National Fiscal Pact stressing the need for realizing the full tax potential from under-taxed sectors, particularly real estate, property, and agricultural income, and this is the context of the meeting, the statemen highlighted.
The agenda of the NTC meeting focused on fostering collaboration between federal and provincial authorities to enhance tax systems, improve compliance, and boost revenue collection. Key discussions revolved around:
- Data Sharing and Tax Digitization: Strengthening information-sharing mechanisms between FBR and provincial revenue authorities, leveraging advanced tools for data analysis, and implementing digital solutions to streamline tax collection.
- Harmonization of GST: Advancing efforts to harmonize the General Sales Tax (GST) across provinces and transitioning to a unified tax portal for better efficiency and transparency.
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- Provincial Tax Reforms: Reviewing measures to enhance agricultural income tax and property taxation, ensuring alignment with federal policies while addressing existing challenges.
- Broader Tax Base: Exploring strategies to transition GST on services to a broader framework, aligning with international best practices to minimize ambiguities and improve administration.
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NTC for Concrete Steps
The NTC emphasized the importance of cohesive policy implementation, capacity building, and robust stakeholder engagement to achieve sustainable reform goals. Participants acknowledged the potential of these measures to support national fiscal stability and promote equitable growth.
The Federal Minister for Finance and Revenue reiterated the government’s commitment to fostering collaboration among all stakeholders for a unified and efficient tax framework.
The meeting concluded with actionable steps to advance the discussed reforms in a timely manner.
