Paradigm behind an ideal tax-to-GDP ratio
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The article discusses the importance of the tax-to-GDP ratio and its relevance in assessing a nation's economic resources. It highlights that Pakistan has a low tax-to-GDP ratio of under 10 percent and emphasizes the need to raise tax revenue and widen the tax net. The article compares the tax-to-GDP ratios of different countries, with developed nations typically having higher ratios due to increased demand for government services. It also mentions the lower tax-to-GDP ratio in the US, which may be attributed to infrastructure issues. The article emphasizes the need for expenditure priorities, political tax reforms, and targeted subsidies to address the economic challenges in Pakistan. It also mentions the World Bank's suggestion that tax revenues above 15 percent of GDP can contribute to growth and poverty reduction. The article concludes by highlighting the need for a comprehensive approach that includes expenditure reduction and implementing reforms in the tax, pension, and energy sectors.

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https://www.brecorder.com/news/40296546