Finance Minister Mohammed Aurangzeb’s call on Tuesday for collective efforts to include traders, distributors, and other businessmen into the tax net, particularly through the Tajir Dost scheme launched by the Federal Board of Revenue, was a much-needed speech in today’s economic climate. The minister’s candid tone and acknowledgment of Pakistan’s weaknesses in its tax regime highlight the necessity of expanding the program. His passionate appeal to businessmen across the country to be part of this comprehensive change was both timely and essential.
While the FBR has made progress in promoting its scheme, the involvement of notable figures to advocate for why the average trader and businessman should join is crucial. After decades of non-compliance with tax regulations, persuading people to comply, especially when it involves parting with hard-earned profits, will require significant effort. The FBR must recognize that while it is right in asserting that the scheme is here to stay, it must also ensure that its firm resolve is accompanied by a softer, more cooperative approach.
By enticing and collaborating with traders, the likelihood of the scheme’s widespread adoption increases significantly. Therefore, the FBR should partner with politicians, key opinion leaders, and other influential personalities to communicate this softer message, creating a foundation of support that will eventually lead to mass adoption of the scheme. Nevertheless, the minister’s firm stance that this scheme, and the government’s broader economic reform plan, will persist despite protests and opposition, is the correct approach.
Though the FBR must balance firmness with flexibility, it is essential to maintain that this tax regime is here to stay.