Tax-to-GDP ratio to reach 13pc in three years, vows Aurangzeb

Finance Minister Muhammad Aurangzeb on Thursday vowed to take Tax-to-GDP ratio to 13 per cent in three years in Pakistan.

He was addressing a news conference alongside Minister for Information and Broadcasting Attaullah Tarar and Minister of State for Finance Ali Pervez Malik in Islamabad today.

Muhammad Aurangzeb said taxation reforms have a key role in fiscal stability. He said the country has been languishing between 9-10 per cent in terms of tax to GDP ratio but we have set a target of 13.5 per cent for next three years to improve this standing.

The finance minister said digitalization of FBR is aimed at enhancing transparency. He said that approval of design phase of digitalization was given by Prime Minister Shehbaz Sharif in September this year and now we are in execution phase of this process.

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Muhammad Aurangzeb said while bridging tax gap and controlling tax leakages, every possible effort will be made to ensure that common man does not suffer.

Earlier, Minister of state for Finance and Revenue Ali Pervez Malik said improved governance and economic management during the last few months of incumbent government have yielded results.

He said inflation rate has dropped significantly and the fruits of our economic reforms have reached the common man.

The minister of State underlined the need for increasing revenue and tax sources along with making the taxation process judicious so it does not burdenize a particular segment of segment of society especially common man.