Prime Minister Muhammad Shehbaz Sharif, on Monday, directed the completion of a production monitoring system for sales tax purposes across all manufacturing sectors by the end of this year.
Chairing a review meeting on FBR reforms in Islamabad, the prime minister observed that production monitoring through cameras under the faceless taxation system was being made more effective and directed the removal of obstacles in the installation of automated monitoring systems.
He warned that those businesses that had been collecting taxes from consumers but pocketing the same amount instead of depositing it with the government exchequer did not deserve any concession.Shehbaz Sharif
The prime minister appreciated those in the manufacturing sector that were voluntarily installing production monitoring systems and said the government would take all necessary measures to achieve the country’s full tax potential.
He commended the Federal Board of Revenue Transformation Team for preparing a comprehensive assessment of the country’s tax potential in the production sector.
He also appreciated the audit report on the production monitoring system in the cement sector and directed the Ministry of Information Technology to audit the system in other sectors to assess its effectiveness.
The meeting was briefed that the production monitoring system had been fully installed in the sugar, cement, tobacco, tiles and fertilizer sectors while the installation process was underway in the textile, packaged water, packaged juice and packaged milk sectors, with procurement of the required equipment had been completed.
The meeting was further informed that procurement of equipment for the steel, poultry and tyre sectors would be completed by October 15, while procurement for the tea, household electronics, leather, paper and board, and oil and ghee sectors would be completed by October 30.
The monitoring system was expected to become fully operational across all these manufacturing sectors by December 31 this year. The prime minister was also informed about resistance from several industries to installing monitoring systems in the textile sector. However, Nishat Mills, Alkaram Textile, Alkaram Cotton Mills, J.K. Spinning Mills, Surti Enterprises, Interloop Limited, Faisal Spinning Mills, Ibrahim Fibres Limited, Sapphire Textiles Limited and Nishat Chunian had voluntarily installed the systems in compliance with government measures.
The prime minister appreciated these companies for their cooperation.
The meeting was also presented with a review report on the gap between tax collection and the country’s tax potential, including an assessment of the revenue that could be generated through improved tax compliance and enforcement.
It was informed that government measures had resulted in the collection of an additional Rs1.3 trillion in taxes over the past three years, representing a 40% increase in tax collection. The meeting was told that the additional revenue had been generated through enforcement measures.
He particularly appreciated the officials who prepared the report and presented them with shields at the conclusion of the meeting.
Separately, Prime Minister Shehbaz Sharif on Monday directed to increase the total financing for small and medium-sized enterprises (SMEs) from Rs1.1 trillion to Rs2.2 trillion by 2028, underscoring their potential to drive economic growth and create business opportunities across the country.
Chairing a meeting on the Small and Medium Enterprises Development Authority (SMEDA), the prime minister said the business community was the backbone of any country’s economy, while Pakistan’s SME sector had immense potential to accelerate economic development, a Prime Minister’s Office news release said.
He said the ongoing reforms at SMEDA were aimed at empowering small and medium-sized entrepreneurs and facilitating the establishment and expansion of businesses.
The prime minister emphasised the need to empower people in underdeveloped areas, saying it would help reduce migration from these regions to major cities and contribute to balanced national development.
The prime minister directed SMEDA to formulate a comprehensive plan to educate a greater number of people about procedures for obtaining business loans and take effective measures to raise public awareness about entrepreneurship.
He also instructed the authority to commission feasibility studies for establishing SMEs in various sectors through relevant industry experts and make them available in local languages. The initiative, he said, would enable aspiring entrepreneurs across the country to benefit from the studies.
During the meeting, the prime minister was briefed on ongoing reforms at SMEDA and measures being taken to promote the SME sector. The meeting was informed that SMEDA was being transformed into a central platform to provide training to aspiring entrepreneurs and facilitate their access to bank financing for establishing businesses.