Pakistan is targeting a 16 percent rise in tax revenues in the year ending June 2017, Finance Minister Ishaq Dar said on Friday as he unveiled a budget aimed at shoring up the country’s finances.
Dar said Pakistan would target a fiscal deficit of 3.8 percent of gross domestic product for the coming financial year, down from the 4.3 percent envisaged for this year.
He told parliament that the aim was to push Pakistan’s persistently low tax-to-GDP ratio to above 10 percent and raise revenues from taxation to 3.95 trillion rupees ($37.8 billion) from 3.42 trillion this year.
Successive governments have promised to rein in tax evaders and boost revenues but face fierce resistance to change, including from the many politicians and businessmen believed to be among those dodging their taxes.
‘On path to progress’:
Revealing his government’s performance on the economic front, Dar said tax collection stood at record high. However, exports showed a major decline, but for the finance minister, it was mainly due to a global downward trend for commodity prices that should be blamed.
“By the end of June, we expect to meet our tax revenue targets…tax collection grew by 60pc in last three years,” he said.
The government’s tax revenue target is Rs3104 billions.
Aims to push tax to GDP ratio over 10 percent in 2016/17
Tax revenues estimated at 3.96 trillion rupees versus 3.42 trillion rupees in prior year
Total revenue estimated at 4.92 trillion rupees in 2016/17