Islamabad: Pakistan’s tax-to-GDP ratio has risen from 8.7% to 11.2% in the last five years, a news source reported. This information was revealed in a recent report compiled on the said economic metric; later shared with International Monetary Fund (IMF).
As per sources, deliberations have been taking place between the IMF and the Pakistani government for many months now – with the talks currently having progressed to their operational stage. The policy-level deliberations are all set to begin next week.
As such, the IMF has expressed satisfaction at the country’s rising tax-to-GDP ratio, and has demanded that the trend should continue. The bank has further requested for the ratio to be further raised to 13.2%, while the government has assured the IMF that the ratio would certainly be increased to 12.7%.
Of the 11.2% tax relation recorded, the percentage of direct taxes received also showed an increase of up to 4.5%, while indirect taxes stand at 6.7%.
Divided into categories, the ratio of customs duty rose to 1.8% of the GDP, while the ratio of Sales Tax also saw a rise at 4.3%. The percentage of Federal Excise Duty, however, stood at its former position of 6% of GDP.
