Budget proposal: TIP says can help plug revenue loss
Budget in violation of policy which bars giving of additional funds. PHOTO: FILE
Transparency International Pakistan (TIP) on Thursday said that it can help the government in preventing revenue loss.
“Tax evasion in the country has been reported at over Rs1,800 billion annually. This loss to the public exchequer can be plugged by implementing proposals of TIP,” it said in a letter written to Finance Minster Ishaq Dar.
Although public is paying General Sales Tax (GST) on a number of items, the businessmen are not fully depositing the revenue in treasury. TIP said the GST adjustments are mostly on fake documents.
TIP said it can prepare the scheme for achieving the goal of zero tolerance against corruption. This scheme will help divert more funds from the gross domestic product (GDP) to the tax kitty, TIP claimed. “The scheme can increase the tax to GDP ratio from 8% to 16% in one year,” TIP said in its letter to finance minister.
“The minster is requested to examine the TI Pakistan proposal for the Budget of 2014/15, and if possible act on the recommendations which are very simple and easy to apply,” the letter said.
Published in The Express Tribune, May 22nd, 2014.