Agreed to set 11.2 percent tax-to-GDP target for next fiscal year

Islamabad (a2zgenius.blogspot.com) It has been agreed to set 11.2 percent tax-to-GDP target for next fiscal year.

According to private TV channel Dunya News, sources in the FBR say that the FBR target for next fiscal year will be set by estimating the GDP size, an agreement has been reached with the IMF on 11.2 percent tax-to-GDP for next fiscal year.

According to the document, the target of 10.6 percent tax ratio in terms of GDP will be achieved in the current fiscal year, it has been agreed to increase tax-to-GDP by more than 5 percent for next fiscal year, the target for 2025-26 will be set for FBR by estimating the GDP size.

Sources say that the tax-to-GDP ratio has reached about 10.8 percent in the current fiscal year. The tax-to-GDP ratio will be increased to 13 percent while under the loan program. The tax-to-GDP ratio will be increased gradually annually to increase it.

FBR sources have further said that discussions are being held on budget targets in virtual talks with the IMF. The second tranche of the loan program will also be approved by the Executive Board once the budget proposals are finalized.