Govt to shift tax burden from salaried class to under-taxed sectors  

Govt To Shift Tax Burden From Salaried Class To Under-Taxed Sectors  
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The federal government has reaffirmed its resolve to shift the tax burden away from salaried individuals and the already-taxed formal sector, aiming instead to bring previously undocumented and under-taxed segments into the net. 

The matter was taken up during a meeting between Finance Minister Muhammad Aurangzeb and a delegation from the All Pakistan Ceramic Tiles Manufacturers Association (APCTMA) at the Finance Division. The delegation was led by Abdul Rehman Talat, Executive Director of Orient Ceramica. 

According to an official statement, the APCTMA delegation gave a comprehensive overview of the tile manufacturing sector, stating that Pakistan’s daily installed production capacity currently stands at around 560,000 square metres. The sector has attracted investments exceeding Rs100 billion, with nearly 60 per cent of that coming from Chinese investors. 

Industry representatives highlighted significant progress in localisation, reporting a dramatic drop in import dependence—from 74 per cent to just 4 per cent. With local raw materials and labour now meeting almost all production needs, the industry expects to bring import reliance down to just 1 per cent soon. 

The Finance Minister lauded the sector’s efforts, noting that such progress in localisation contributes directly to import substitution, job creation, and strengthening domestic supply chains. 

He also shared his experience from a recent visit to ceramic manufacturing units in Gujranwala, where he witnessed the use of modern machinery and quality standards in local production. 

“Industries like ceramics show that Pakistani manufacturing, with the right policies, can compete globally,” Aurangzeb remarked during the meeting. 

Discussions also touched upon broader economic reforms, particularly in the energy sector and improving the business climate. The minister noted that energy reforms remain a key priority, with the government aiming to make power more affordable and reliable through a more efficient pricing system. 

He also assured the delegation that efforts are underway to simplify regulations and reduce red tape, in order to create a more investment-friendly and predictable policy environment. 

Aurangzeb stressed that expanding the tax base is critical for ensuring fiscal stability and fairness. He said the Prime Minister is personally overseeing key meetings to fast-track reforms aimed at increasing transparency and economic documentation. 

The APCTMA delegation welcomed the government’s consultative approach and reiterated their support for policies that promote industrial growth and economic resilience. 

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