KARACHI, Jan 17: Adviser to Prime Minister on Finance and Economic Affairs Shaukat Tarin has stressed upon the need for improving tax-to-GDP ratio to meet growing needs of development and social welfare.

Speaking at the excellence award distribution ceremony held on Saturday to acknowledge the performance of top taxpayers of Large Taxpayers Unit (LTU) Karachi, the adviser stressed the need for bringing in all segments of society under the tax net.

He said the country’s revenue collection was crossing the Rs1 trillion-mark over the time, but concerted efforts were needed to increase the tax-to-GDP ratio as well.

He further said that during current year the tax-to-GDP ratio would be increased to 13.5 per cent from around 10 to 11 per cent.

The ceremony was presided by Federal Board of Revenue Chairman Ahmed Waqar and attended by State Bank of Pakistan Governor Salim Raza, Senator Ahmed Ali, MNA Mrs Fauzia Wahab and Member Inland Revenue, FBR Irfan Nadeem.

LTU Director General Muhammad Faiyaz Khan in his welcome of address appreciated the performance of top taxpayers who contributed towards revenue and nation building.

He said the concept of integrated tax management, automation of direct and indirect tax processing, auditing, e-filing, e-payment, priority and service to large taxpayers units had not only changed the mindset of all stakeholders, but also reformed very climate of income tax, sales tax and federal excise payment and collection.

He said that the LTU collection had registered a massive growth from Rs57 billion in 2002-03 to Rs165 billion in 2007-08, an average growth of 28 per cent under all heads.

Ahmed Waqar acknowledged the contribution of top taxpayers of this cosmopolitan and offered an overview of importance of the FBR in meeting 75 to 80 per cent of government expenditures. He also stressed upon the need to increase tax-to-GDP ratio and to broaden tax base and collection of due taxes.