ISLAMABAD - President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain on Wednesday said that expansion in the tax net is imperative for the bright and prosperous future of the country and coming generations.
Currently, Gross Domestic Product (GDP)-to- tax ratio is very low in the country which forces every government to borrow which is unsustainable, he said. Mian Zahid Hussain said that masses hope that government will invest in health, education, infrastructure, social safety and poverty eradication but the culture of tax evasion is barring their dreams to come true.
One of the major reasons for non-compliance is the trust deficit between the taxpayers and tax collectors which must be tackled, he observed.
The business leader said that tax-to- GDP ratio has come down from 13 percent to 10 percent in Pakistan, while it is at 14 percent in Bangladesh which is being increased to 18 percent. Many African countries have already achieved the goal of more than 18 percent tax-to- GDP ratio, he informed.
Govt alone cannot ensure massive investment needed for national development, therefore, the private sector should also come forward to discharge national obligations, he said.
The business leader noted that despite political turmoil the Federal Board of Revenue (FBR) has collected Rs100 billion in the first two weeks after many years. If the institution can maintain its momentum, it will be a great achievement, he added. He said that FBR should collect taxes but ensure that business community is not harmed as the business activities are already suffering due to prevailing uncertainty.
NNI