AGL40.01▼ -0.99 (-0.02%)AIRLINK127.99▼ -0.15 (0.00%)BOP6.6▼ -0.1 (-0.01%)CNERGY4.6▲ 0.08 (0.02%)DCL8.48▼ -0.13 (-0.02%)DFML41.48▲ 0.39 (0.01%)DGKC86.58▼ -0.55 (-0.01%)FCCL32.14▼ -1.25 (-0.04%)FFBL65.42▲ 0.01 (0.00%)FFL10.25▼ -0.22 (-0.02%)HUBC110.49▼ -0.14 (0.00%)HUMNL14.75▼ -0.55 (-0.04%)KEL5.13▲ 0.15 (0.03%)KOSM7.12▼ -0.31 (-0.04%)MLCF41.65▼ -1.34 (-0.03%)NBP60.09▼ -0.33 (-0.01%)OGDC194.69▼ -2.95 (-0.01%)PAEL27.95▼ -1.06 (-0.04%)PIBTL8▼ -0.26 (-0.03%)PPL151.17▼ -2.99 (-0.02%)PRL26.88▲ 1.88 (0.08%)PTC16▼ -0.09 (-0.01%)SEARL78.2▼ -0.25 (0.00%)TELE7.39▲ 0.02 (0.00%)TOMCL35.67▼ -0.42 (-0.01%)TPLP7.91▼ -0.16 (-0.02%)TREET15.89▼ -0.07 (0.00%)TRG52.76▼ -0.6 (-0.01%)UNITY26.55▼ -0.16 (-0.01%)WTL1.27▲ 0 (0.00%)

More taxpayers, more revenue

Share
Tweet
WhatsApp
Share on Linkedin
[tta_listen_btn]

 

THE Federal Board of Revenue (FBR) has accepted demands of the World Bank (WB) for the identification of millions of new taxpayers through automated data sharing and ICT-based business intelligence under $400 million Pakistan Raises Revenue Project (PRRP).This marks a pivotal step towards broadening the tax base, a crucial imperative for the economic stability and sustainable development of the nation.

Our economy grapples with a concerning dilemma characterized by a tax-to-GDP ratio of merely 10.4%, significantly lower than its regional counterparts. The bulk of the country’s revenue is derived from indirect taxes imposed on consumption, including sales tax, customs duties and excises. Consequently, direct taxes, which are collected by the federal government, constitute a meagre proportion of total tax receipts, burdening honest taxpayers, particularly the salaried class, with disproportionate tax obligations. The prevalent scenario underscores the pressing need to diversify the tax base by incorporating previously untaxed sectors such as agriculture, retail and real estate. By bringing these sectors under the tax net, the country can mitigate the burden on existing taxpayers while simultaneously augmenting its revenue streams. However, achieving this goal necessitates a concerted effort to address systemic challenges and foster a culture of tax compliance across various segments of society. The PRRP’s emphasis on automated data sharing and ICT-driven business intelligence signifies a paradigm shift in approach to revenue mobilization. By harnessing advanced technological tools, the FBR can streamline tax administration processes, enhance transparency and minimize opportunities for tax evasion and avoidance. The deployment of Independent Verification Agents to monitor the registration, filing and payment of taxes by new taxpayers underscores the project’s commitment to accountability and efficacy. The drive towards increased tax compliance holds far-reaching implications for the economic trajectory. A robust and broad-based tax system not only generates essential funds for government expenditure but also fosters investor confidence, facilitates fiscal sustainability and reduces reliance on external borrowing. Moreover, a strengthened tax regime enables the government to allocate resources towards priority areas such as infrastructure development, education, healthcare and social welfare programs. By financing these initiatives through domestic revenues, we can reduce dependence on foreign aid and loans, thereby enhancing economic sovereignty and self-reliance.

 

Related Posts

© 2024 All rights reserved | Pakistan Observer