Some taxing truths!

By Vijay Kumar

++We have to curb the menace of under invoicing and over invoicing and duty and tax evasion.

++ potential exists to increase tax collection in addition to existing up to 4% to 4.5% of the GDP in next 10 years and growth up to 0.25% to 0.35% to be achieved in the next three years against the required growth of 0.2%.

++ The sectors of economy have larger shares in GDP but are contributing negligible in the government revenues. The gap between shares in GDP and revenue payments by the said sectors is the actual gap that needs to be filled to achieve higher tax-to-GDP ratio.

++ The process of reforms moving ahead with targeted objectives of facilitation and increase in economic activity in the country would ultimately result in increased revenue collection.

++ Change has to come to tax machinery as well as private sector should change its mindset.

++ Existing tax base is not so narrow which it looks.

++ these reforms would transform the Revenue department in to an efficient taxpayers service institution.

Sounds familiar? Well these are not our problems! These are pearls of wisdom from Muhammad Abdullah Yusuf, Chairman Central Board of Revenue of Pakistan, in a Seminar on Saturday.