Tax ratio falls to 4.4pc in first half of FY23
Business
The four provinces came up with a cash surplus of just Rs101 billion
ISLAMABAD (Web Desk) - Pakistan’s tax-to-GDP ratio plunged further by 0.4 per cent in July-December of the current fiscal year to 4.4pc from 4.8pc of the same period last year, official statistics show.
A half-yearly data on fiscal operations released by the Ministry of Finance (MoF) says the non-tax revenue remained unchanged at 1.1pc of GDP in the first half of the year and stood at Rs967bn, supported by a massive Rs378bn from the State Bank of Pakistan and a record Rs178bn of petroleum development levy on oil products.
The four provinces generated a cash surplus of just Rs101bn against a full-year target of Rs800bn committed to the International Monetary Fund (IMF).
The overall revenue to GDP ratio also declined by 0.3pc and stood at 5.6pc of GDP in the first half of the fiscal year when compared to 5.9pc of GDP during the same period last year.
Defence expenditure remained unchanged at 0.8pc of GDP in the first six months this year but increase in absolute numbers to Rs639bn against Rs520bn of the previous year, the data further reveals.
