*Prime Minister Imran Khan Invites Facebook and abolish unnecessary taxes
Prime Minister Imran Khan invited Facebook to consider investments to support Pakistani incubators and to assist with digital literacy initiatives. The prime minister was tallking to Ms Sheryl Sandberg, COO of Facebook, who called on him in Davos, on the sidelines of WEF Annual Meeting 2020. The Prime minister said the social media platforms should organize third party fact checking services for more responsible digital journalism. The COO Facebook enlarged invitation to the prime minister for visiting Facebook headquarters. On the other hand PM also directed to eliminate needless taxes and inspection and almost 150 licences required for small shopkeepers and businessmen as he vowed to facilitate the commerce community. While chairing a meeting on licensing regime in the provinces, he also directed all the provincial governments to abolish 74 different licences of this nature. Prime Minister directed to simplify the procedure for essential licences and introduction of automated system through employing lattest technology. He stressed the need for the businessmen to contribute their bit to Pakistan’s prosperity through paying their taxes. Imran Khan lamented that the last governments had wasted public money on lavish lifestyles of their leaders and therefore, the citizens are not willing to pay taxes. When leaders live lavishly on public expense, who will pay taxes, he said, adding that he was trying to change the culture starting with himself. We reduced the expenses of the Prime Minister House by 40 percent, he said. I live in my own home, pay my own expenses. My salary is not enough to complete my own household expenses, he added. He claimed that his expenses on overseas trips were 10 times less than what was spent through leaders before him. I am just saying that I am starting with myself, he said. There should be a realisation about the need to respect public money, while seeking the business community’s support to bring Pakistan out of the crisis. Nations only increase when the whole nation is united. The government of Pakistan alone can’t do it. Underlining the need for rise in tax collection, the Imran Khan said that during the first year of his government, half of the amount collected in taxes went towards payment of interest on loans acquired through the last governments. And yet, we assigned Rs190 billion for the Ehsaas program, adding, however, that there were many sectors that needed improvement like health, education and provision of safe drinking water but that would only be possible if the government of Pakistan had the funds. He detailed attempts through his team to enhance situations for the businessmen, saying, we are continuously trying to figure out how to eliminate obstacles in the way of the business community. Imran Khan said that they had planned to eliminate the need for licences for 102 businesses, making the process simpler for small business owners. The Prime minister Imran Khan emphasised that Pakistan will never progress if the people do not pay taxes, saying his government is making all attempts to restore the public trust in the rulers. Imran Khan said that the government of Pakistan is taking bold steps to ensure ease of doing business in Pakistan. People don’t want to pay taxes because they don’t trust rulers, he said while addressing the business community at the Prime Minister House.
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Statistics showed that fiscal indicators during FY2018 in Pakistan suggest that total revenue at 15.1 percent of GDP remained below the revised target of 16.0 percent. Both tax and non-tax revenue explained dismal presentation, while expenditures rose. Tax revenue stood 12.9 percent of GDP against the target of 13.2 percent, of which FBR tax collection remained at 11.1 percent against the revised target of 11.4 percent. Similarly, non-tax revenue stood 2.2 percent as compared to the target of 2.8 percent. On the other hand, total expenditures reached at 21.6 percent as compared to the target of 21.5 percent. Hence, fiscal deficit surpassed its revised target of 5.5 percent and reached at 6.5 percent of GDP in the last fiscal year. During the last five years, total revenue as percent of GDP on average reached 14.9 percent, with tax revenue and non-tax revenue at 11.8 and 3.1 percent, respectively.
Furthermore, Imran Khan said the government of Pakistan is also working to organize industries in Pakistan, as without promotion of this sector the dream of a developed the country cannot be materialised. Owing to initiatives taken through the government of Pakistan, the prices of food commodities would decline in upcoming periods. He urged the business community to pay taxes and help his government to make Pakistan. The country can never prosper without taxes and we are trying hard to organize a tax culture in Pakistan, he added. While expressing his concerns over Pakistan’s taxpaying standing, the prime minister said, Pakistan ranks one of the lowest in the taxpaying countries.