Caretaker Finance Minister Advises FBR to Enhance Tax to GDP Ratio

Caretaker Finance Minister Advises FBR to Enhance Tax to GDP Ratio

Islamabad, August 18, 2023 – The newly appointed Caretaker Finance Minister, Shamshad Akhtar, has issued a directive to the Federal Board of Revenue (FBR) to focus on improving the tax to GDP ratio.

During a meeting held at the FBR headquarters on Friday, the Caretaker Finance Minister underscored the need for crafting strategies that would not only bolster the tax-to-GDP ratio but also widen the tax base. These measures are aimed at maximizing revenue collection for the government.

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Minister Akhtar stressed the importance of innovative approaches to tax sectors that have previously remained untaxed. The focus, she noted, should be on concerted efforts to meet the revenue collection target for the ongoing fiscal year.

The Caretaker Finance Minister’s visit to the Federal Board of Revenue Headquarters involved discussions with FBR Chairman Malik Amjed Zubair Tiwana and Members of the Board. Present during the meeting were also Secretary Finance Imdad Ullah Bosal and senior officials from both FBR and the Finance Ministry.

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In the course of the meeting, Chairman FBR provided an extensive overview of the revenue collection performance of FBR. This encompassed the assigned targets for the current financial year 2023-24, along with the strategies in place to achieve them. It was noted that in the previous financial year, FBR had successfully collected Rs. 7,169 billion against a target of Rs. 7,200 billion. The Chairman also assured that every effort will be exerted to achieve this year’s ambitious collection target of Rs. 9,415 billion.

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Furthermore, Chairman FBR apprised the Caretaker Minister of ongoing procedural enhancements designed to simplify the tax payment process and provide greater convenience to taxpayers. He also provided updates on key FBR initiatives, including the Broadening of Tax Base, Track and Trace System, and Point of Sale System, all aimed at optimizing revenue generation.

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The Finance Minister’s directive to enhance the tax to GDP ratio reflects a commitment to strengthening Pakistan’s fiscal position and ensuring sustainable revenue growth.