ISLAMABAD: State Minister for Revenue Hammad Azhar said on Friday that the government intends to raise tax-to-GDP ratio by four percent in the next three years as it has become imperative to ensure stable national growth.
Speaking on the floor of the National Assembly, Azhar said that the national economy was intentionally paralyzed by previous governments for their vested interests while the Pakistan Tehreek-e-Insaf government has cut down the current account deficit by 30 percent.
He said that, in the last ten years, the tax-to-GDP ratio witnessed a growth of only two percent, but the PTI intends to enhance it by four percent in the next three years.
“There exists a need to increase taxes, in the previous 10 years only 2 percent tax increase was seen. The federal government would be bankrupt if if tax to GDP is not increased by 4 percent. The previous government imposed Rs5,000 tax on every 0.1 million, we have revised it to put it on Rs 2,500,” he added.
He said the government had given a five year economic plan in the budget and intends to reduce debt-to-GDP ratio as well.
Azhar said that the government was forced to take further loans to pay off previously taken loans, and has imposed no taxes on flour, ghee, fruits or vegetables. “Had we not imposed taxes on sugar, the opposition would have alleged that the government is in nexus with sugar mafia.”
Azhar, during the speech, said that he listened to the opposition’s speech for 13 hours but the legacies of dictatorships are not brave enough to listen to him.
