Tax-to-GDP ratio will decrease to 12.5%: Pasha

Former Finance Minister Dr. Hafiz Pasha while speaking at the launch of his book ‘Growth and Inequality in Pakistan’ has said that tax to GDP ratio will decrease to 12.5% from 13%, which is unfortunate for the country that is facing high fiscal deficit. He regretted that development spending has been slashed by 30% which will result in low growth. He recommended that the govt. should improve tax collection in agriculture sector and withdraw a number of withholding taxes, which have gone to 64 in number. The govt. should impose Capital Gain Tax (GGT) on properties as there is major scope in this sector for revenue generation and take innovative reforms in the country.

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