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Pakistan meets tax revenue target for first time in 10 years
ISLAMABAD: Pakistan collected 3,104 billion rupees ($29.7 billion) in taxes in fiscal year 2015/16, the finance ministry said on Friday, the first time it has met its tax revenue target in a decade.
Last year, the government collected 2,588 billion rupees in taxes but missed its target by 9 percent.
Tax collection has been one of the biggest challenges facing successive governments who have promised to rein in tax evaders but faced fierce resistance to change, including from the many politicians and businessmen believed to be among evaders.
The inability to raise tax revenue has constrained government spending, depriving schools and hospitals of funds, exacerbating a power crisis and causing widespread hardship in the nuclear-armed country of 190 million people.
Tax revenue for fiscal year 2015/16 is the highest in the country's history, according to the finance ministry.
"This represents a 60 percent increase in the last three years, representing an average increase of 20 percent per annum," the finance ministry said in a statement to mark the beginning of the new fiscal year.
"Total tax collection goes to the provinces to spend on education, health and other sectors," it said.
The ministry said foreign exchange reserves had crossed $23 billion, the highest in the country's history. The sum includes reserves held by the central bank and commercial banks.
The IMF helped Pakistan stave off a default in 2013 with a $6.7 billion financial assistance programme. At that time, dwindling foreign exchange reserves covered less than six weeks of imports at $6.25 billion.
The IMF bailout programme ends in September.
Earlier, the Bureau of Statistics announced Pakistan's annual average inflation rate had fallen to its lowest in 46 years, inching down to 2.86 percent for the 12 months through June.
Interest rates are also at their lowest level in 42 years.
http://economictimes.indiatimes.com...rst-time-in-10-years/articleshow/53006237.cms
ISLAMABAD: Pakistan collected 3,104 billion rupees ($29.7 billion) in taxes in fiscal year 2015/16, the finance ministry said on Friday, the first time it has met its tax revenue target in a decade.
Last year, the government collected 2,588 billion rupees in taxes but missed its target by 9 percent.
Tax collection has been one of the biggest challenges facing successive governments who have promised to rein in tax evaders but faced fierce resistance to change, including from the many politicians and businessmen believed to be among evaders.
The inability to raise tax revenue has constrained government spending, depriving schools and hospitals of funds, exacerbating a power crisis and causing widespread hardship in the nuclear-armed country of 190 million people.
Tax revenue for fiscal year 2015/16 is the highest in the country's history, according to the finance ministry.
"This represents a 60 percent increase in the last three years, representing an average increase of 20 percent per annum," the finance ministry said in a statement to mark the beginning of the new fiscal year.
"Total tax collection goes to the provinces to spend on education, health and other sectors," it said.
The ministry said foreign exchange reserves had crossed $23 billion, the highest in the country's history. The sum includes reserves held by the central bank and commercial banks.
The IMF helped Pakistan stave off a default in 2013 with a $6.7 billion financial assistance programme. At that time, dwindling foreign exchange reserves covered less than six weeks of imports at $6.25 billion.
The IMF bailout programme ends in September.
Earlier, the Bureau of Statistics announced Pakistan's annual average inflation rate had fallen to its lowest in 46 years, inching down to 2.86 percent for the 12 months through June.
Interest rates are also at their lowest level in 42 years.
http://economictimes.indiatimes.com...rst-time-in-10-years/articleshow/53006237.cms
