Dar believes tax rates in Pakistan should be on par with developed world
Federal Finance Minister Ishaq Dar on Wednesday emphasized that Pakistan has no other option but to increase the tax to Gross Domestic Product (GDP) ratio to bring economic stability.
Speaking at an event in Islamabad, he emphasized that increment in tax rates in Pakistan should be done along the lines of the developed world especially in the aftermath of Covid-19 pandemic.
Dar went on to stress that the country needs to expand the tax net.
He criticized Pakistan Tehreek-e-Insaf (PTI) for failing to manage the economy during its 3.5 years tenure.
Dar said that the national debt nearly doubled from $30 billion to $54 billion during PTI’s tenure.
However, the financial czar highlighted that the debt to GDP ratio of many major countries of the world is much higher than that of Pakistan.
He also discussed the issues of tax reporting in certain industrial sectors, but extended his support for the track and trace system of the Federal Board of Revenue (FBR).
Similarly, he emphasized that politics and economy should be separated.
To a question regarding dollar exchange rate, he contended that the government of Bangladesh interferes in the currency market while adding that Pakistan’s government also needs to do the same.
Critically, Dar said that there was an urgent need to stop the smuggling of wheat and other essentials at Chaman border.
He added that the government has started an operation against it.
Talking about hundi hawala mafia fully activated especially amid current economic situation, Dar said that the government has launched operation against money mules too.