KARACHI, Feb 2: The government is seeking suggestions for expanding tax base and also improve tax-GDP ratio which is lowest in the region.

The Central Board of Revenue (CBR) has convened a meeting of experts and the stakeholders on Wednesday for formulating suggestions over the issue and find out ways and means as to how to widen the tax base and improve the tax-to-GDP ratio, which is presently around 12 per cent.

The secretary general revenue and chairman CBR Abdullah Yousuf will preside over the meeting, which is basically an inter-active session for chalking out a strategy and drawing suggestions for a futuristic plan for revenue collection.

The participants have been asked to give input and views on policy issues, particularly those related to expansion of tax base, improving the tax-GDP ratio and simplification of procedures in administration of revenue.

There is a general feeling amongst the business community that the government should draw a tax policy, which should be based on tax generation rather than on tax collection.

It is strongly being felt that if trade and industry expands it will generate more and more taxes but if the government keeps its interest restricted to tax collection this will not only retard economic growth but will ultimately restrict revenue collection to a point where there is no growth in trade and industry.