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

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Advisor to Prime Minister on Revenue Haroon Akhter has said that all efforts are being made to improve tax-to-GDP ratio which has risen from 9 per cent to 11 per cent and it will improve further to 12 per cent this year but it was still very low as compared to India where tax-to-GDP ratio stood at 18 per cent.

Exchanging views during his visit to the Karachi Chamber of Commerce and Industry, he said: “If tax-to-GDP improves by 6 per cent, bringing it at par with India, we will have a surplus budget and hence the revenue earned will be utilised 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 also 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 did not 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 notices were being served to those tax evaders who had been living luxurious lives, frequently traveling abroad, using credit cards and their kids studying abroad. Moreover, notices were also being issued to those individuals whose returns filed with the FBR were not depicting their lifestyle while a Benami Transaction Act will also be introduced very soon, he added.

Referring to suggestions presented by the tax reforms commission, he admitted that 80 to 90 per cent of TRC report carried those suggestions which were needed to bring positive changes and improve functioning of the FBR. “Some of TRC recommendations will be added to this year’s budget while others will be introduced later as we cannot expect positive changes overnight.”

 

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