The budget strategy paper for 2014-17 presented to the federal cabinet by Finance Minister Ishaq Dar sets ambitious targets for reduction of debt and fiscal deficit, but concedes that the tax-to-GDP ratio has declined during the current year despite an increase in tax rates.
According to sources, the minister informed the cabinet on Thursday that even though tax collection had improved by more than 15 per cent during this year, the tax-to-GDP ratio had dropped significantly.
