Govt eyes 13.5pc tax-to-GDP ratio in three years

Finance Minister Muhammad Aurangzeb on Tuesday announced the government’s plan to increase the tax-to-GDP ratio from the current 10 per cent to 13.5pc within the next three years, stressing that the proposed amendments to tax laws would improve tax collection and compliance in the country. The minister made these remarks during a meeting of the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla. The session was convened to deliberate on the Tax Laws (Amendment) Bill 2024 but was postponed due to a lack of quorum after a brief debate on sales tax. Mr Aurangzeb underscored the need for strict enforcement of tax laws, questioning why many citizens were willing to pay taxes but reluctant to register. He emphasised that unregistered individuals would be brought into the tax net.