What is the direct tax-to-GDP ratio in Pakistan? (2024)

What is the direct tax-to-GDP ratio in Pakistan?

Pakistan's tax-to-GDP ratio was 10.3% in 2021, below the Asia and Pacific (29) average of 19.8% by 9.4 percentage points. It was also below the OECD average (34.1%) by 23.8 percentage points. The tax-to-GDP ratio in Pakistan did not change between 2020 and 2021 and remained at 10.3% of GDP in both years.

What is the ratio of Pakistan direct tax-to-GDP?

In the fiscal year 2022, Pakistan's tax collections reached only 10.4% of GDP, a trend that has been steadily declining. The federal government's tax expenditures increased from 1.3% of GDP in FY16 to 2.7% of GDP in FY22, putting further strain on revenue generation efforts.

What is the taxpayer ratio in Pakistan?

The ratio of people and companies paying taxes was a mere 24% compared to the total registered taxpayers. In fiscal year 2022, about 8 million people were registered with the FBR and just 3 million filed returns till June 2022.

What is the direct tax-to-GDP ratio in the US?

In 2022, the United States had a tax-to-GDP ratio of 27.7% compared with the OECD average of 34.0%. In 2021, the United States was ranked 32nd out of the 38 OECD countries in terms of the tax-to-GDP ratio.

What is direct and indirect tax in Pakistan?

Pakistan's tax system includes direct and indirect taxes, each with its specific purpose and impact on the economic system. Direct taxes are levied on people or companies simultaneously, while indirect taxes are levied on goods and supplies.

What is the GDP ratio of Pakistan?

Pakistan gdp growth rate for 2022 was 6.19%, a 0.3% decline from 2021. Pakistan gdp growth rate for 2021 was 6.49%, a 7.76% increase from 2020. Pakistan gdp growth rate for 2020 was -1.27%, a 3.77% decline from 2019.

What is the tax-to-GDP ratio in Pakistan 2018?

The FBR tax-GDP ratio, which was at 9.0% in FY 2013-14, had improved to 11.1% in FY 2017-18 has again dropped to 9.9% in FY 2018-19. However, during FY 2018-19, the broadening of tax bas efforts continued and around 0.8 million new filers have been added and overall number of filers reached 2.7 million.

Why is tax-to-GDP ratio low in Pakistan?

There are multiple reasons behind Pakistan's low tax-to-GDP ratio, regarded as one of the lowest internationally, and they include a flawed, corrupt and inefficient tax structure.

Who pays the most taxes in Pakistan?

The two sectors that pay the most income taxes are the financial sector (54.9 billion rupees) and oil and gas (46.2 billion rupees).

Which country has the highest tax-to-GDP ratio?

What is the ratio of tax revenue to GDP?

A tax-to-GDP ratio is a gauge of a nation's tax revenue relative to the size of its economy as measured by gross domestic product (GDP). The ratio provides a useful look at a country's tax revenue because it reveals potential taxation relative to the economy.

Do taxes count as GDP?

Economic activities such as taxes or the sale of illegal goods are not counted in GDP. There are different kinds of GDP measurements such as nominal GDP, real GDP, and per capita GDP. All of these measurements show different aspects of the economy. The GDP calculated in current prices is known as nominal GDP.

Are taxes used to calculate GDP?

GDP can be determined by summing up national income and adjusting for depreciation, taxes, and subsidies. GDP can be determined in two ways, both of which, in principle, give the same result.

What is the problem with tax system in Pakistan?

Tax evasion and avoidance are major problems in Pakistan, caused by inadequate tax enforcement, a cash-based economy, and ineffective tax obligations. This, in turn, limits the government's ability to provide better public services, which then further reduces tax compliance.

How much tax collection in Pakistan?

What is the problem with tax collection in Pakistan?

Tax Administration: The tax administration in Pakistan is often inefficient and ineffective. The tax authorities lack the resources and capacity to enforce tax laws and regulations effectively. The lack of transparency and accountability in the tax administration also contributes to corruption and bribery.

What is the GDP ratio?

The debt-to-GDP ratio is the metric comparing a country's public debt to its gross domestic product (GDP). By comparing what a country owes with what it produces, the debt-to-GDP ratio reliably indicates that particular country's ability to pay back its debts.

What is the highest GDP rate of Pakistan?

GDP in Pakistan averaged 100.47 USD Billion from 1960 until 2022, reaching an all time high of 374.70 USD Billion in 2022 and a record low of 3.75 USD Billion in 1960. This page provides - Pakistan GDP - actual values, historical data, forecast, chart, statistics, economic calendar and news.

What is the current GDP of Pakistan in 2024?

What is the tax-to-GDP ratio in India 2016?

The combined tax-GDP ratio for the center and states is estimated to be around 16.5% as per 2016-17 budget. For the center, the tax GDP ratio was 11.3% as per 2016-17 budget and the 2017-18 budget also makes the same estimate.

What is the meaning of tax-to-GDP ratio in India?

Tax to GDP ratio is the size of the tax revenue given by the government. A high tax-to-GDP ratio suggests a larger fiscal ability. So the government can address the societal requirements of the nation efficiently. The government also uses it to generate revenue from the country for infrastructure, public services, etc.

What is the present tax-to-GDP ratio of India?

India's direct tax-to-GDP, which is the share of taxes in the overall output generated in the country, hit a 15-year high of 6.11 percent in 2022-23, time-series data released by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance showed.

What is the indirect tax rate in Pakistan?

What is the principal indirect tax? Standard rate of 17% for most of goods and 13% to 16% for most of services. Reduced rates for certain goods and services are also applicable subject to respective conditions applicable thereto. Zero-rate of tax is applicable for export of goods and certain other goods/ services.

What is the role of taxation in Pakistan economy?

One of the most significant benefits of taxation in Pakistan is that it helps to create a stable and sustainable source of revenue for the government. This revenue can then be invested back into the economy to create jobs, improve infrastructure, and boost economic growth.

Does Pakistan have a low GDP?

With a population of 241.5 million people as of 2023, Pakistan's position at per capita income ranks 161st by GDP (nominal) and 138th by GDP (PPP) according to the International Monetary Fund (IMF).