ISLAMABAD: The Pakistan Muslim League-Nawaz (PML-N), the primary party in the anticipated next government coalition, has urged the Federal Board of Revenue (FBR) to develop a plan to boost the tax-to-GDP ratio, according to reports from private media on Tuesday.
In this context, the PML-N leadership, including Senator Mussadiq Malik and Ahad Cheema, was briefed by senior FBR officials. They requested the country’s revenue authorities to create a plan to increase the tax-to-GDP ratio to at least 13.5% over the next five years.
“The FBR has been tasked with digitizing the economy and utilizing information technology to bring potential sectors into the tax system,” said an official speaking on condition of anonymity.
The official further stated that the forthcoming government would prioritize the digital economy, thus the FBR was instructed to document the economy accordingly.
There’s a plan to integrate FBR, National Database and Registration Authority (Nadra), State Bank of Pakistan (SBP), and Ministry of IT to leverage e-commerce and digitization for expanding the tax base.
PML-N leaders sought FBR’s input to enhance the tax-to-GDP ratio through a comprehensive strategy, noting that it currently stands around 8.5% annually.
The upcoming government aims to double revenue collection over five years, with projections to reach Rs9,415 billion by June 30, 2024.
Additionally, the government plans to reduce the maximum individual tax rate from 30% to 15%, increase the minimum tax threshold from Rs0.4 million to Rs1.2 million per year, facilitate online tax payments through various channels, strengthen alternative dispute resolution mechanisms, and establish a Queue Management System to eliminate discretionary practices for sales tax refunds.
(Islamabad51_Newsdesk)
