Friday, 29 March 2024
Trending
What is tax to GDP ratio of Pakistan
BUDGET

What is Latest Tax to GDP Ratio of Pakistan

What is Latest Tax to GDP Ratio of Pakistan

What is the Latest Tax to-GDP Ratio of Pakistan? Tax-to-GDP ratio currently is at 9.2 percent according to the Federal Board of Revenue (FBR) report on 2021-22 performance.

According to the report, the tax-to-GDP ratio of the country has been low compared to other regional countries. But it has increased significantly in recent years. Previously it was 4.4 percent in 1950 which has now increased to 9.2 percent.

FBR Chairman Asim Ahmad said that the fiscal year 2021-22 (FY22) faced:

  • a global wave of inflation,
  • supply chain disruptions,
  • high-interest rates,
  • and devaluation of the currencies.

Tax collections during FY22 were Rs. 1,403.5 billion higher than the previous fiscal year, recording an impressive growth of 29 percent, FBR Chairman added.

Tax Collections by FBR in First Quarter 2023. What is Latest Tax to GDP Ratio of Pakistan.

What is the tax GDP ratio?

It measures the size of a country’s tax revenue compared to its GDP. The higher the tax-to-GDP ratio, the better the country’s financial position.

See also  Despite the obstacles, the FBR issued a Rs250b tax refunds

What are the main reasons of low tax-to-GDP ratio in Pakistan?

The following have adversely affected our tax-to-GDP ratio:

  • Tax concessions,
  • Less tax contributions by major sectors of Pakistan, i.e., agriculture, industry, and services.
  • weak enforcement,
  • Tax Exemptions to some sectors
  • low compliance by taxpayers,
  • reliance on indirect taxes and
  • issues in improving tax administration
Newsletter
Subscribe Now

Sign up for  Daily Digest and get the best of News for you.

[contact-form-7 id="11414" title="Contact form 1"]

Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: