FinMin envisions 16-18% tax-to-GDP ratio, urges customs revamp

WEB DESK: In a significant address at Pakistan’s International Customs Day event, caretaker Finance Minister Dr Shamshad Akhtar underscored the imperative for ongoing reforms and increased revenue efforts by the Federal Board of Revenue (FBR).

Dr Akhtar conveyed that recommendations from the FBR were under active consideration, with the FBR chairman actively participating in reform initiatives. Expressing optimism, she articulated her hopes for the FBR to surpass the ambitious target of more than Rs9.4 trillion this year, emphasizing the critical role of revenue mobilisation.

The minister highlighted the broader objective of elevating Pakistan’s tax-to-GDP ratio from 8-9 per cent to 16-18 per cent within the next 3-5 years, aiming for sustainable economic growth.

Addressing the need for Customs streamlining, Dr Akhtar urged simplification of processes to combat smuggling and bolster revenue collection.

She announced plans under the reforms to reduce the number of new Statutory Regulatory Orders (SROs) and duties, underscoring Customs’ pivotal role in cross-border trade development. Dr Akhtar defined Pakistan Customs as a crucial regulator in the economy.

To modernize the Customs ecosystem, the minister directed the utilization of technology partnerships and platforms, such as the Pakistan Single Window Facility. Pointing out opportunities at the Torkham and Chaman borders, she envisioned Customs playing a pivotal role in expanding commercial avenues in those regions.

Dr Akhtar stressed the integration of the transit trade system, developed with the assistance of the Asian Development Bank (ADB), with Customs stations at Torkham and Chaman borders.

This integration, she noted, would significantly boost trade volume and create lucrative income opportunities at these border points.

Encouraging a shift in focus, Dr Akhtar advised, “You should be proud not only for revenue collection but for integrity, transparency, and the implementation of high standards of governance to assist the people of Pakistan, facing food insecurity and other economic challenges.”

FBR Customs Operations Member Dr Fareed Iqbal Qureshi echoed the call for Customs to embrace partnerships and technology to effectively address contemporary trade threats, including money laundering and fiscal fraud.

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