Govt working to increase tax-to-GDP ratio to 13pc in three years: FinMin Aurangzeb
Business
Says digitalisation need of the hour to make system transparent
ISLAMABAD (Dunya News) – Federal Finance Minister Muhammad Aurangzeb said on Thursday that tax-to-GDP ratio must be increased to bring positive changes in the economy.
Addressing a press conference in Islamabad where he was flanked by State Minister for Finance Ali Parvez Malik and Federal Board of Revenue chairman Rashid Mahmood Langiral, he said tax reforms were crucial for the economy. “Right now, tax-to-GDP ratio stands at 10 percent and it will be increased to 13 percent in the next three years,” he said.
He said digitalisation would be inculcated in the system of FBR to make the system more transparent.
Aurangzeb said the process of structural reforms was going on and the target to increase tax-to-GDP ratio was 13 percent which would be achieved in three years. Meanwhile, he added, all steps would be shared with the public to know their views.
Moreover, he said, the digitalisation process had been in process for the past few months. “It is a sincere effort of the government to put less burden on the working class,” he highlighted.
Ali Parvez Malik, meanwhile, said the most severe pressure on the working class was inflation and with the untiring efforts of the incumbent government, it had now come down to five percent from 40 percent.
Mentioning solution, he said in order to further reduce inflation, the deficit in budget would have to be reduced. However, he was also hopeful that the people would soon get the benefits of the decrease in inflation.
FBR chairman Rashid Mahmood Langrial said modern tools were being introduced in the tax system. He said all should play their part in the improvement of tax mechanism.
Lastly, he said all institutions were working with the FBR to improve the tax system. The focus, he highlighted, was on the top five percent as they had not been paying sufficient taxes.
