ISLAMABAD: The Federal Board of Revenue is committed to raising tax-to-GDP ratio up to 10 percent during 2012-13 against 9.1 percent in 2011-12 by amassing Rs 2,381 billion by the end of current fiscal year. Sources told Business Recorder here on Saturday that the FBR has fixed a target of 10 percent tax-to-GDP ratio for current fiscal year. Tax-to-GDP ratio has been declined from 9.8 percent in 2007-2008 to 9.1 percent in 2011-12.
In 2011-12, the FBR's collection stood at Rs 1,883 billion with tax-to-GDP ratio at 9.1 percent. The revenue collection in 2010-11 was Rs 1,558 billion and tax-to-GDP ratio was 8.9 percent. Tax-to-GDP ratio in 2009-10 was 8.9 percent and collection was Rs 1,327 billion during this period. The tax collection in 2008-09 was Rs 1,161 billion with tax-to-GDP ratio of 9.1 percent. In 2007-08, tax collection was Rs 1,008 billion and tax-to-GDP ratio was 9.8 percent.
Sources said that the FBR has estimated to collect Rs 150 billion by improving effective sales tax rate during 2012-13. The registration and investment schemes would generate around Rs 100-120 billion. The recovery drive against non-duty paid smuggled cars would generate around Rs 50 billion during current fiscal year. According to sources, the FBR has also compiled data about the percentage of population which files returns for payment of taxes. In Pakistan 0.9 percent of the population pay taxes. In India, 4.7 percent of the population is paying taxes. In Argentina, 16.5 percent of population is paying taxes. In France, 58 percent of the total population is paying taxes. In case of Canada, 80 percent of the total population pays taxes.