ISLAMABAD: Federal Board of Revenue (FBR) Chairman Tariq Bajwa has said that the basic reason of taking foreign loan is lower ratio of tax revenue in the country.
He stated this while addressing a seminar on the topic of ‘Tax Crises in Pakistan’ here in Islamabad.
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The FBR chairman said that Pakistan has acquired loans from international organisations and other countries to overcome the budget deficit and run the state affairs as its revenue collections are not up to the mark to fulfill the domestic needs.
He added that tax to GDP rate in Pakistan is hardly nine to ten percent, while on the other hand, our immediate neighbouring country, India’s tax to GDP ratio was eight times higher than Pakistan, he said.
He added that audit system, regulatory complications and loop holes in banking system are the basic reasons of low tax collection which need to be addressed on war footing basis,
To increases the tax collections in the country, there is dire need to more empower the FBR, Bajwa said.
