Caretaker Finance Minister urges doubling Tax-to-GDP ratio for development goals

Customs reform urgency stressed by Finance Minister at World Customs Day event

Dr. Shamshad Akhtar, Caretaker Finance Minister, delivered a pivotal message during the World Customs Day ceremony at Customs House Karachi, stressing the critical need to double the tax-to-GDP ratio for achieving essential development goals.

Addressing the audience, Dr. Akhtar highlighted challenges in the customs sector, emphasizing the urgency for reforms to address issues like money laundering, smuggling, fiscal fraud, and tax evasion, which have significant repercussions on the economy.

The Finance Minister outlined a reform agenda, including the reduction of duty rates and the simplification of Statutory Regulatory Orders (SROs). He underscored an ongoing five-month consultation process within the Federal Board of Revenue (FBR), incorporating recommendations and schemes from FBR members. Dr. Akhtar expressed confidence in surpassing a revenue target exceeding 4 trillion rupees.

During the event, the Finance Minister discussed the integration of transit trade systems at border stations, a project supported by the Asian Development Bank. This initiative aims to expedite trade clearance without human intervention, potentially unlocking a revenue potential ranging from 2 to 4 trillion rupees in Pakistan. Dr. Akhtar emphasized the significance of reinforcing taxation and valuation processes to enhance revenue streams.

In terms of financial transparency, Dr. Akhtar shared collaborative efforts between the Ministry of Energy and Ministry of Finance to inform the International Monetary Fund (IMF) about the revolving loans of Pakistan Telecommunication Company Limited (PTCL) and Sui Southern Gas Company (SSGC).

Dr. Farid Iqbal, Member Customs Operations FBR, addressed the gathering, highlighting the role of customs administrations in facilitating trade and safeguarding borders. Under the theme “Engaging Traditional and New Partners,” he emphasized the evolving dynamics of international trade and the essential nature of collaborative efforts.

Acknowledging the Customs Department’s accomplishments, Collector of Customs Basit Abbasi commended the successful anti-smuggling campaign, resulting in the seizure of smuggled goods worth 3.5 billion rupees in 1000 cases over the last seven months.

4 COMMENTS

  1. instead of exploring salaried class, please find other options to increase govt income. unfortunately the concerned have been unable to broad scope of government taxes.

  2. Improving tax to GDP ratio slogans are very nice. But we don’t want to see increasing tax revenue by grinding existing tax payers. It would have been a lot better if Madam Finance Minister highlights the efforts to increase tax net.
    What efforts are in the pipe line to tax the traders and middle men. Increasing tax revenue by enhancing tax on organized sector/ salaried person is not worthy of praise.

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