FBR targeting tax-to-GDP ratio of 10% – Alfalah Securities Limited

Karachi, November 26, 2012 (PPI-OT): FBR is targeting the tax-to-GDP ratio up to 10% during FY13 against 9.1% in FY12 due to estimated tax collection of PKR 2,381 billion by the end of FY13.

According to Alfalah Securities Limited, FBR has fixed a target of 10% tax-to-GDP ratio for current fiscal year. Higher revenue collection would be contributed by improving effective sales tax rate leading to an estimated collection of PKR 150 billion during FY13 while the new registration and investment schemes would generate around PKR 100-120 billion. The higher tax collection would ease off pressure on the budget deficit and would lower the borrowing requirement of the government therefore, all out efforts are being taken to improve tax collection.