June 6, 2003	Friday	Rabi-us-Sani 5, 1424

ISLAMABAD, June 5: The revenue deficit has been narrowed to one per cent in 2002-03 from three per cent in the year 1990-91.

According to Economic Survey Report 2002-03 released here on Thursday, the improvement in revenue deficit would increase national savings, which in turn, would reduce the country’s dependence on foreign savings to finance domestic investment.

Elaborating further break up, the survey report says the tax-to-GDP ratio has remained stagnant at 10-13 per cent during the last decade.

The report says the tax-to-GDP ratio fixed at 11.5 per cent would be achieved easily provided the tax authorities succeeded in achieving the revenue target set for the current financial year.

The decline in tax-to-GDP ratio calls for a greater deal of effort to widen the tax base to mobilize the additional resources to bring this ratio at par with other countries which were more or less at the same level of economic development.

To increase the tax-to-GDP ratio, the report suggests reform in the tax system with focus on better tax enforcement and bringing more taxpayers into tax net.

The share of direct taxes in total taxes collected by the CBR rose to 32.2pc in 2002-03 from 18pc in the 1990-91, respectively.