Karachi: Prime Minister Shehbaz Sharif announced a reward for eliminating the 400 billion rupee gap in tax revenues while speaking at the inauguration of the Fee-less Customs Assessment System at the Karachi Port. He revealed that there is a 400 billion rupee gap between the tax revenue and the target, and the gap would be closed with a reward system.
He acknowledged that the current tax system is hindering business and investment but emphasized the need to fulfill the commitments made to the International Monetary Fund (IMF).
Prime Minister Sharif commended the efforts of the Federal Board of Revenue (FBR) and Karachi Port officials, describing the introduction of a modern customs system as a significant achievement. He said the new automated system would minimize human intervention, and under the new system, the clearance process has reduced from 107 hours to just 19 hours.
He further stated that 88% of importers are satisfied with the Fee-less system. Upon assuming office, the government initiated reforms in the FBR, and improvements have been visible. The tax-to-GDP ratio has now reached 10.8%.
The Prime Minister also announced that officers showing excellent performance would be rewarded with cash awards. He stated that government measures have led to an increase in exports and a decrease in inflation.
He stressed the need to work together to reduce electricity prices, mentioning a 24% increase in remittances and a 34% increase in IT exports. Improving the economy remains a major challenge, he added.
Prime Minister Sharif also addressed the need to lower production costs by reducing electricity prices, pointing out that the circular debt has reached 2.5 trillion rupees due to electricity theft and line losses.
He further mentioned that all Discos (distribution companies) are ready to be handed over to the provinces through mutual consultation. He stressed that tax reforms are crucial to increasing investment.
Prime Minister Sharif remarked that Pakistan was looted for decades in the past, and lamenting over this is now futile. He had previously stated that such tax slabs would not attract investment. He emphasized that if the 400 billion rupees were not collected, there would be a problem. He confidently stated that reclaiming this money is not a big deal and that the target of recovering the 400 billion rupees would be achieved.
