ISLAMABAD, July 12: Federal Board of Revenue Chairman M Abdullah Yousuf said on Saturday that though the tax machinery raised more than Rs1 trillion revenue in the outgoing fiscal year (2007-08), there was still a gap of Rs400 to Rs500 billion.

“This gap cannot be bridged until and unless we enhance our tax-to-GDP ratio from existing 11 per cent to 15 or 16 per cent,” said the FBR chairman while speaking at a workshop on “management automation projects”.

He said despite all constraints, handicaps and non-availability of necessary tools, “we have been able to expand our tax base during the last four years form one million to 2.2 million taxpayers at the growth rate of 20 per cent per annum”.

Mr Yousuf said tax officials have been able to enhance the revenue collection at an average rate of about 18 per cent per annum.

In the next seven years, the chairman said: “We have to achieve the target of 15/16 per cent tax-to-GDP ratio with an annual growth of at least 0.5 per cent.”

The FBR chief called for efficient use of modern technology for more revenue generation, enhancing tax-to-GDP ratio and expanding the tax base.

Mr Yousuf urged the officers to equip themselves with latest techniques and technologies.

“This organisation has a great potential. Once you are fully equipped with modern knowledge, techniques and technology, it will not be difficult to achieve the desired results,” he added.

He was of the opinion that as an institution or country, we have to go for a better change. “No country or organisation can grow and progress if it remains stagnant,” he said, adding: “we have to change ourselves with this rapid changing world to face the challenges of modern times”.

Commenting on the on-going automation projects, Mr Yousuf said: “we have to realise the dream of making FBR a totally paperless organisation”.

The chairman reminded the FBR employees of their responsibilities towards making tax machinery a most progressive and efficient organisation. He added that special treatment being given to FBR employees in perks and privileges by the government was not for all times to come

“We have to prove through our actions and achievements that we fully deserve this treatment,” he remarked.