Pakistan Is Improving Tax Collections
April 7, 2015 Uncategorized
On April 7th the International Monetary Fund issued a new statement confirming that it has released a new tranche of the support loan for Pakistan, as the country has been deemed as making solid progress of boosting tax revenues.
According to the experts of the IMF, since the start of the current financial year, the government of Pakistan has revoked several Statutory Regulatory Orders, which have previously been used to grant unjustified tax exemptions and tax breaks.
The Statutory Regulatory Orders have previously been criticized as for being biased, unfairly benefiting groups with political connections.
It is estimated that removing the tax breaks will help raise tax revenues by an equivalent of approximately 0.3 percent of the national GDP.
Further it is expected that the government will announce the drop of even more Statutory Regulatory Orders, a move expected to boost tax collections even further.
It was noted that in order to further improve tax revenues, more effort will need to be expanded in order to boost the collection of taxes and to eliminate the instances of tax dodging in rural areas of the country, as currently provincial governments and tax authorities do not see enough incentive to make greater efforts to collect all taxes owed.