KARACHI, Oct 4: Minister for Finance Shaukat Aziz on Friday said that economy has started picking up as revenue collection, a major indicator, has exceeded the target during the first quarter of the current fiscal.

Besides higher revenue collection, he said, imports have also recorded a rise and there was greater commercial activity, which gave upward push to the sales of manufactured goods.

Taking these indicators into consideration the finance minister said it shows that the economy is on its way to gathering strength as it has just took a leap forward.

Due to stable exchange rate, he said, imports have moved up resulting in higher collection of customs duty as well as sales tax, but excise duty has declined because it is being replaced by sales tax.

Talking to newsmen during his short visit to newly established Large Taxpayers’ Unit (LTU), the minister said higher GDP at 4.5 per cent compared to 3.5 per cent of last year has also contributed towards higher economic activity and revenue collection.

Shaukat Aziz said that the number of large taxpayers would be increased to 600 from the present strength of 300 and assured more improvement in revenue collection system so that taxpayers’ confidence is restored in revenue collecting machinery.

He said setting up of LTU is part of tax reforms undertaken by the government a year ago and the objective is to facilitate big taxpayers with better customers service.

The minister said tax-to-GDP ratio of the country is very low and there is a greater need to increase the number of taxpayer, and tax survey has, to some extent, helped in enhancing the number of taxpayers.

Presently foreign experts are working on tax reforms and providing the CBR with guidelines for resolving issues confronting tax collecting machinery. He said the experts have produced good results in other countries facing same problems.

The minister commended the performance by income tax department and other revenue collecting agencies for generating higher revenue collection.

For any country, he said, tax collection is necessary to carry out development works as well as improving the socio- economic conditions of the masses.

He said a Medium Taxpayers Unit has been established in Lahore to facilitate taxpayers and give them better services. He expressed the hope that with such measures would remove fear of going close to tax collectors.

In due course, Shaukat Aziz said, the staff members at LTU will be increased to facilitate taxpayers at each and every stage.

The minister who was accompanied by the chairman, CBR, Riaz Malik also took a quick tour of each section of the LTU and appreciated the working of the entire staff under the leadership of director general, LTU, Akhtar Jamil Khan.