ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb announced on Thursday that artificial intelligence will be utilised to increase tax collection while raising concerns over the disproportionate tax burden in Pakistan.
Speaking at a conference on “Retail Reimagined: Innovate, Collaborate & Thrive”, organised by The Pakistan Retail Business Council (PRBC), the minister said that the country’s retail sector, which contributes a significant 19% to the country’s GDP, is paying a mere 1% in taxes, sparking concerns over the sector’s lack of contribution to the national exchequer.
He stressed that the disproportionate burden of taxes on the manufacturing, services industry, and salaried class is unsustainable.
“We need to bring other segments, including agriculture, real estate, retail, and wholesale, into the tax net.” He lauded provincial government for taking measures towards this end by passing bills in their respective assemblies for imposing agricultural taxes.
He said the government has been engaging with the retail sector, requesting them to formalise their businesses and pay their due share of taxes. For national interest, “we cannot afford to have people taking a free ride anymore,” adding documentation was key to achieving this goal.
Later, while speaking to the media, he announced that artificial intelligence would be utilised to increase tax collection.
