ISLAMABAD: Minister for Finance Shaukat Tarin on Monday underscore the need for enhancing tax to GDP ratio upto 20% with in 6 to 7 years in order to achieve 7 % annual economic growth as well as meeting with the future developmental expenditures.
Addressing the launching ceremony of Parliamentarian’s Tax Directory, Tax Year 2019, he said that the role of revenue collection was prerequisite to achieve sustainable economic growth and social prosperity, adding that tax to GDP ratio had never exceed 12 to 14 % of the GDP during last 74 years, which could be attributed to wrong attitude about tax compliance.
The event was organized by Federal Board of Revenue (FBR), which was also attended by the senior officials of Ministry of Finance, Chairman FBR, members FBR and directors generals of different departments of the board.
The minister said that government was determined to broaden tax base and taking several steps to bring potential tax payers under tax net to promote documentation of economy through promoting fair, transparent and simplified tax compliance culture in the country.
Out of the total population, which was comprising over 220 million peoples, only 220 million were paying their taxes, he said adding that that FBR in collaboration with National Data base and Registration Authority (NADRA) by using artificial intelligence have identified the potential the tax payers and would issue notices asking them to fulfil their national obligations.
Shaukat Tarin also stressed the need for simplifying revenue collection and removing distortions in taxation system, besides eliminating variations in tax collection at federal and provincial levels and shifting towards progressive taxation. He added that government was also taking steps to harmonize local revenue collections by taking the provincial governments on board.
The minister appreciated FBR for publishing tax directory and termed it a positive steps towards promoting fair, transparent and simplified tax culture in the country, adding that tradition of publishing tax directory of parliamentarians continued from 2013, which was aiming to promote tax compliance culture and bring transparency in the system.
Speaking at the occasion, Chairman FBR Dr Muhammad Ashfaq Ahmad said that tax directory of the members of Parliament was publishing from 2013 and this time FBR has improvised and further elaborated the directory for best reflection of the tax declarations of parliamentarians.
He said that it was approved by the Cabinet in its last meeting, which was headed by Prime Minister, adding that he had also directed to publish tax directory of the members of the parliament for tax year 2020, which would be finalized soon.