‘Revenue should be increased by increasing the scope of direct taxes’

“But developing countries on average generate about 25 percent of their GDP in revenue. In such a situation, we must also increase our revenue collection.”

He suggested planning to take revenue collection to at least 13 percent of GDP within the next three years.

Razzak pointed out that the allocation for education, health and social security sectors is very less compared to the GDP.

Ahsan H Mansoor, Executive Director, PRI, said, “The main obstacle to increasing our revenue collection is the National Board of Revenue (NBR) and the government itself.

“There is no country in the world where VAT registration and collection are done through one administration.”

Citing the example of some countries including the United States, he said, “VAT registration will be done from one office and that officer will determine how much revenue to pay. Go to another office and collect that revenue.”

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