LAHORE: President of the Pakistan Muslim League (N) Lahore and MNA Pervez Malik has said that the government has to increase tax-to-GDP ratio for sustainable economic development of the country. Those who are rich but not paying tax are burden on the honest taxpayers.
He was talking to a delegation of businessmen. Pervez Malik said that tax evasion is one of the biggest reasons of economic challenges being faced by the country.
He said that tax-to-GDP ratio in Pakistan is just around 10 percent which is among the lowest in the world while in Australia, Belgium, Denmark, France, Norway, Sweden, China and India it is 43.4, 46.8, 49, 44.6, 43.6, 45.8, 17 and 17.7 percent respectively.
Pervez Malik said that we have to broaden the tax base in the larger interest of the trade, industry, economy and existing honest taxpayers. He said that it is a matter of concern that currently less than one percent of Pakistanis are paying income tax.
“We have to boost the tax-to-GDP ratio to at least 17 percent during the current financial year”, Pervez Malik added.
PML-N leader said that why those people are not paying tax who are wealthy landloards and businessmen zipping between their luxury homes in imported vehicles.
Pervez Malik said that honest taxpayers should supplement the government efforts aimed at broaden the tax net and it can be done only by waging a war against tax cheaters without discrimination of good and bad cheaters.
To a question, Pervez Malik said that government is taking measures to simplify tax procedures and doing more to increase the documentation of the economy.
To another question, PML-N leader said that imposition of tax on bank transaction would bring the non-filers into the tax net which would lay-off the burden of honest taxpayers.
Pervez Malik said that government acknowledges the services of business community and would leave no stone unturned to solve the issues being faced by the business doing people. He said that increase in tax-to-GDP ratio would result in progress & prosperity while government would be able to solve energy crisis as well.
