The Federal Board of Revenue's (FBR) Tax-to-GDP ratio has been declined to 8.6 percent following net revenue collection of Rs 1550 billion during 2010-2011. Sources told Business Recorder here on Friday that the federal taxes to GDP ratio is presently at 9.2 percent including all taxes collected at the federal level. However, FBR's tax to GDP ratio stood at 8.6 percent.
The taxes collected at the federal level also included petroleum levy and gas development surcharge. About the expected FBR's tax to GDP ratio in 2011-2012, sources said that it has yet to be decided about the ratio for 2011-2012. Taking into account the net revenue collection in 2010-2011, the FBR's Tax-to-GDP ratio has also been declined to around 8.6 percent, sources added.
Tax authorities on June 30, 2011 reportedly informed the press conference that the FBR will be able to meet the target of Rs 1952 billion set for next fiscal in view of documentation and broadening of the tax base exercise. We would be able to collect around Rs 106 billion during 2011-2012 from taxation measures taken in March 2011.
The figure of the Tax-to-GDP ratio depends upon the final figures of collection for 2010-2011. If the FBR will be able to reach Rs 1600 billion the Tax-to-GDP ratio will reach 9.3 percent as compared to the existing figure of 9.2 percent. The target for the Tax-to-GDP ratio for fiscal (2011-2012) has been set at 9.6 percent, tax authorities added. In the changed scenario, the actual net revenue collection stood at Rs 1550 billion against target of Rs 1588 billion which further declined the FBR's Tax-to-GDP ratio to 8.6 percent in 2010-2011.