Saturday, 28 September 2024, 07:16:00 am

>
 
Government needs to enhance tax base and not just increasing the existing rate of tax

Shakeel Ramay (Senior Analyst): If you look at the economic situation of Pakistan, I think the government did not have any other option but to increase taxes. It already utilized all the other various options available. However, the government needs to enhance tax base and not just increasing the existing rate of tax. In Pakistan, tax to GDP ratio is very low in comparison with other countries. The history of Pakistan shows that every government tried to improve agriculture sector and came up with plans to revolutionize this vital sector. But in practical terms, the sector could not be developed up to the mark. We have to wait how the policy of current government related to agriculture unfolds in real terms. The recently announced Investment Facilitation Council also sees increased role of agriculture. Government needs to create balance between tax and non-tax revenue.