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ISLAMABAD: Pakistan has reported a 25 percent rise in tax revenues since the beginning of the fiscal year due to a raft of new tax collection measures introduced by the new government.
The country has one of the lowest tax collection rates in the world and the International Monetary Fund is watching its efforts closely. It wants Pakistan to do more to tackle rampant tax evasion, particularly by its wealthy elite.
Any delay in implementing proposed reforms could disrupt the delivery of vital assistance from the IMF, which last month agreed that Pakistan could seek a loan package worth $6.6 billion to fix its moribund economy.
The Finance Ministry said new measures such as a sales tax rise to 17 percent from 16 percent had already generated $1.3 billion in revenues since the beginning of the new fiscal year in July.
A ministry official, speaking on the condition of anonymity, said the new measures were expected to generate Rs 207 billion in the current fiscal year.
In the first month of the fiscal year, that is in July, the increase ascribed to the new taxes would be roughly Rs 10 billion, the official said.
The rest can be ascribed to better assessments, plugging of leakages and better supervision and management.
Finance Minister Ishaq Dar told reporters on Tuesday that the government had decided to bring 500,000 new taxpayers into the tax net. We have also sent 10,935 notices to taxpayers last month. reuters
Daily Times - Leading News Resource of Pakistan
The country has one of the lowest tax collection rates in the world and the International Monetary Fund is watching its efforts closely. It wants Pakistan to do more to tackle rampant tax evasion, particularly by its wealthy elite.
Any delay in implementing proposed reforms could disrupt the delivery of vital assistance from the IMF, which last month agreed that Pakistan could seek a loan package worth $6.6 billion to fix its moribund economy.
The Finance Ministry said new measures such as a sales tax rise to 17 percent from 16 percent had already generated $1.3 billion in revenues since the beginning of the new fiscal year in July.
A ministry official, speaking on the condition of anonymity, said the new measures were expected to generate Rs 207 billion in the current fiscal year.
In the first month of the fiscal year, that is in July, the increase ascribed to the new taxes would be roughly Rs 10 billion, the official said.
The rest can be ascribed to better assessments, plugging of leakages and better supervision and management.
Finance Minister Ishaq Dar told reporters on Tuesday that the government had decided to bring 500,000 new taxpayers into the tax net. We have also sent 10,935 notices to taxpayers last month. reuters
Daily Times - Leading News Resource of Pakistan
