First of all, we need to know what is the tax-to-GDP ratio? It’s the ratio of a country’s tax revenue to its gross domestic product. A tax-to-GDP symbolizes economic development. Tax and GDP are related to each other. What is tax revenue? The tax revenue is the tax collected by the government on income, profits, goods and services, vehicle purchase and sell, ownership or transfer of property, and others. Why tax revenue? The government uses these taxes to improve the technology, education, health, and other sectors for the benefit of the citizens. Why our economy is falling? It’s due to the less number of filers, and many other causes that are described below.
Tax is essential for revenue, growth, and economy of the country. Moreover, it assists in supporting basic resources such as firefighting, police, and hospitals. It is significant for education and other areas.
The main sources of tax are income, property taxes, and sales. It is said that a low tax-to-GDP ratio is the fountainhead of all economic troubles. Pakistan’s tax-to-GDP ratio is one of the lowest in the region, only higher than in Bangladesh. In 2019, the ratio has sunk to 9.9% which is the lowest in five years. A low tax-to-GDP ratio is an indication of the country’s incapability to make restraints. These savings are needed for economic development and resource management. Thus, the low tax-to-GDP ratio has severe effects on the country’s development and many more.
These are the long term effects that will cause families to suffer for a long period. It will not impact on only one person’s life, but it will cause everyone suffering. The people would deprive for education, employment, and even food. These kinds of recessions last more than a few months.
There are many causes for this downfall including corruption, which is the major one. The authorities feed themselves by the money of the citizens, and they stop investing in the country. The causes of this comedown are obvious. Also, one of the major causes includes inflation. Which means a rise in the price of goods and services over a period of time. It leads to less consumption of goods and services at the same amount. Inflation is caused by an increase in production cost, energy cost, and national debt. The entrepreneurs would avoid investment for which they will have to bear in the market. However, while Pakistan is at this downfall stage, we should support the government.
Although FBR has taken measures to increase the tax collection, still that’s not enough. We should support our government by paying the taxes that are eligible for us. The number of taxpayers has risen by 700,000, whereas the total population of Pakistan is 197,000,000. Thus, only 0.3% of people are filers. Do you think that’s enough? Isn’t our responsibility? Ask yourself these questions.
Do you want to know how you can save this country? You can become a tax filer now. Your next question would be, HOW TO BECOME A FILER? We are here to solve this query. We have sorted out everything for you. Even if you want to know the other advantages of becoming a filer, we have it too. When you ask how to become a filer we’ll guide you to all steps. There are many filers and non-filers in Pakistan, but none of them are aware of the perks of being a filer. So, for that purpose, you must need tax services, and we are here for you!
Do you know that the filers have all the advantages? They get benefits in all sectors. Including property sale and purchase! Click on the link to read more about it. Even NTN filing, PSEB registration, and all other taxation services are simpler with Spectrum Consultancy!