NTC Discusses Tax Reforms, Harmonization

Minister for Finance and Revenue Senator Muhammad Aurangzeb on Wednesday chaired a meeting of the National Tax Council (NTC) that focused on fostering collaboration between federal and provincial authorities to enhance tax systems, improve compliance and boost revenue collection

ISLAMABAD, (UrduPoint / Pakistan Point News - 4th Dec, 2024) Minister for Finance and Revenue Senator Muhammad Aurangzeb on Wednesday chaired a meeting of the National Tax Council (NTC) that focused on fostering collaboration between federal and provincial authorities to enhance tax systems, improve compliance and boost revenue collection.

The meeting brought together key federal and provincial stakeholders to discuss critical matters related to tax reforms and harmonization, a news release said.

The meeting, held in the context of the recently signed National Fiscal Pact between the Federation and the Provinces, emphasized the need for realizing the full tax potential from under-taxed sectors, particularly real estate, property and agricultural income.

Among others, the meeting was attended by Minister of State for Finance and Revenue Ali Parvez Malik; Finance Minister of Punjab Mian Mujtaba Shuja-ur-Rehman; Finance Minister of KPK Muzzamil Aslam; Finance Minister of Balochistan Mir Shoib Nausherwani; Chairman FBR, chairmen of Provincial Revenue Boards, Federal and Provincial Finance Secretaries, besides experts from the World Bank and other senior officials from Finance Division and provincial finance departments.

The meeting focused on strengthening information-sharing mechanisms between FBR and provincial revenue authorities, leveraging advanced tools for data analysis and implementing digital solutions to streamline tax collection.

It also deliberated on advancing efforts to harmonize the General Sales Tax (GST) across provinces and transitioning to a unified tax portal for better efficiency and transparency.

Besides, the council reviewed measures to enhance agricultural income tax and property taxation, ensuring alignment with federal policies while addressing existing challenges.

During the meeting, it explored strategies to transition GST on services to a broader framework, aligning with international best practices to minimize ambiguities and improve administration.

The council emphasized the importance of cohesive policy implementation, capacity building, and robust stakeholder engagement to achieve sustainable reform goals.

The meeting participants acknowledged the potential of these measures to support national fiscal stability and promote equitable growth.

Minister Aurangzeb 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.