The Pakistan Muslim League-Nawaz (PML-N), on the verge of leading the next government, has charged the Federal Board of Revenue (FBR) with devising a strategy to lift the tax-to-GDP ratio to at least 13.5%, which will enhance the country’s fiscal framework over five years.
Briefings by senior FBR officials to PML-N leaders have focused on strategizing a notable increase in the tax-to-GDP ratio. This strategic directive emphasizes the digital transformation of the economy and the integration of untapped sectors into the taxation system.
The collaboration includes the FBR, National Database and Registration Authority (NADRA), State Bank of Pakistan (SBP), and the Ministry of IT. Their collective aim is to harness e-commerce and digital advancements to broaden the tax base significantly. The PML-N leadership is eager for the FBR to present a robust strategy for improving the tax-to-GDP ratio, which averages 8.5% annually.
The PML-N’s forthcoming administration is ambitious, aiming to double the revenue collection to reach Rs 9,415 billion by June 30, 2024.
Proposed reforms are comprehensive. They envisage a reduction in the maximum individual tax rate from 30% to 15%, an increase in the minimum tax exemption limit from Rs0.4 million to Rs1.2 million annually, and the facilitation of tax payments through diverse digital platforms, including online, mobile phones, ATMs, and banks.
Furthermore, the government plans to fortify the alternate dispute resolution mechanism to make its outcomes obligatory for all stakeholders. It also intends to introduce a Queue Management System to eradicate discretionary practices in managing sales tax refunds.
 gears up to enhance Pakistan's tax-to-GDP ratio to at least 13.5% by leveraging digitization and IT to broaden the tax base, aiming for a more inclusive and efficient tax system){kind=link}