KARACHI, Nov 21: Central Board of Revenue chairman Abdullah Yusuf has said that a quantum jump in tax-to-GDP ratio has to be achieved if the country wants to meet its development targets, make timely payments of debts and keep funding its defence needs.

Talking to a group of journalists during his visit to Large Taxpayers Unit (LTU) here on Monday, he said that tax reforms and tax policy were being framed in a manner to enhance efficiency and transparency in the working of tax collecting machinery.

The chairman CBR, who was on a day-long review mission to various revenue collecting departments including Income Tax, Sales Tax and Customs, said that efforts were afoot to prepare the collecting machinery for meeting needs of the coming days.

Yusuf said that capacity building was going on by imparting training and providing latest systems of automations and computers to revenue collecting departments in order to prepare them to face challenges.

He said that there was a greater need to boost collection of internal taxes such as sales tax, income tax and without improving the system there could not be quantum jump in tax—to-GDP ratio. “Therefore, a tax policy is being framed to meet this challenge so that the country could keep moving on the path of development and security,” he added.

Presently, he said that officers’ capacity building programme was going on and they were being imparted with training enhancing their computer literacy. Mr Yusuf said that reform agenda was going on smoothly and efforts were being made to move all taxes from assessment base to self-assessment base.

Initially, he said sale tax was being collected on self-assessment system and thereafter income tax would also be put on similar lines.

However, recently the customs duties were also put on self-assessment by introducing Customs Administrative Reforms (CARe), which was working smoothly. In nutshell, he said, re-engineering was going on in the tax collection system aiming at bringing in efficiency and transparency so that entire the tax machinery could meet future challenges.

“The real task before the CBR is to overcome the hump by achieving quantum jump in tax-to-GDP ratio and we are also looking at other countries as a role model to achieve this goal,” Yusuf asserted.

Responding to a question, he said that instead of directly bringing agriculture sector into tax net it would be better to reduce its contribution in the GDP which presently stand at 25 per cent and enhance industrial sector’s contribution which barely stands at 18pc at present.

He further said that the CBR collected Rs200 billion during last four months against a target of Rs192 billion, showing an increase of 20 per cent.

APP adds: Meanwhile, addressing the participants of “Manager Skill Development Programme for CBR Executives,” at IBA City Campus on Monday, Mr Yusuf said that the CBR needed thorough and quick reforms i.e. transparency, capacity building, maximum induction of modern machinery and automation to rectify its image and credibility amongst the stakeholder.

“Unfortunately the CBR is known as corrupt and inefficient organization,” he said.

He said that the CBR should be equipped with right mind and skilled tax administrators and collectors, and better infrastructure along with constant review of its working to keep pace with the changes around the world.

Over the last three years, he said, revenue collection had shown improvement but contribution to the GDP was still very low in the region at 9.5 per cent.