Tax-to-GDP ratio will improve to 12 percent this year: Haroon Akhtar

KARACHI, March 12:: Advisor of Prime Minister for Revenue Haroon Akhter has said that as Pakistan was passing through a very crucial juncture, efforts were being made to improve Tax-to-GDP ratio which has risen from 9 percent to 11 percent and it will improve further to 12 percent this year but it was still very low as compared to India where Tax-to-GDP ratio stood at 18 percent.
Exchanging views during his visit to the Karachi Chamber of Commerce & Industry on Saturday, he added, “If Tax-to-GDP improves by 6 percent, bringing it at par with India, we will have a surplus budget and hence, the revenue earned will be utilized to build projects and ensure prosperity for the country.” He was of the view that some out of the box solutions were needed to improve the dismal Tax-to-GDP ratio.
Chairman Businessmen Group and Former President KCCI Siraj Kassam Teli, Vice Chairmen BMG Haroon Farooki and Anjum Nisar, President KCCI Younus Muhammad Bashir, Senior Vice President KCCI Zia Ahmed Khan, Vice President KCCI Muhammad Naeem Sharif, Former Presidents KCCI AQ Khalil, Haroon Agar, Abdullah Zaki, Iftikhar Vohra along with KCCI Managing Committee members and FBR officials were present at the meeting.
Referring to the amnesty scheme for non-filers, the Advisor said that all recommendations given by non-filers from time to time were agreed upon and implemented yet they were not satisfied with the scheme as they don’t want to pay taxes or become filers. “They simply don’t want to come into the tax net and were looking for immunity forever which is not possible.”
He said, “We have to encourage people to make legitimate money and give medals to loyal taxpayers who have been making invaluable contribution to the national economy.” Referring to the concerns expressed by KCCI over inaction against tax evaders, he said that notices were being served to those tax evaders who have been living luxurious lives, frequently travelling abroad, using credit cards and their kids have also been studying abroad. Moreover, notices were also being issued to those individuals whose returns filed at the FBR were not depicting their lifestyle while a Benami Transaction Act will also be introduced very soon, he added. – PR