RECORDER REPORT

KARACHI: President of Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said that masses hope that government will invest in health, education, infrastructure, social safety and poverty eradication but the culture of tax evasion is barring their dreams to come true.

He said expansion in the tax net is imperative for the bright and prosperous future of the country and coming generations.

Currently, GDP-to-tax ratio is very low in the country which forces every government to borrow which is unsustainable, he said.

One of the major reasons for non-compliance is the trust deficit between the taxpayers and tax collectors which must be tackled, he observed.

The business leader said that tax-to-GDP ratio has come down from 13 percent to 10 percent in Pakistan, while it is at 14 percent in Bangladesh which is being increased to 18 percent. Many African countries have already achieved the goal more than 18 percent tax-to-GDP ratio, he informed.

The government alone cannot ensure massive investment needed for national development, therefore, the private sector should also come forward to discharge national obligations, he said.

He said that FBR should collect taxes but ensure that business community is not harmed as the business activities are already suffering due to prevailing uncertainty.