Quote:
Originally Posted by rabia butt
1 more question....umm is it necessary that tax to gdp ratio should be 100%? i mean in an example u quote above its 10%,say,how do we know that tax-gdp ratio is poor?what are the indicators?iam so sorrey i've posted several times fr questions.its because questions bombarded after intervals
|
NO..None of the countries have 100% tax to GDP ratio..We have persistent deficit budgets and we have to finance our budget with AID..thats why we have to improve our tax-to-GDP ratio..let me explain this in this way..We have to generate revenur to finance diffrent projects..to pay salaries for services..to start new projects..for education sector ,medical sector etc etc..for this we need money..and for money we need taxes and other sectors which can generate income..if we can't generate enough income from other sources then we have to rely on taxes...so if we need more money we have to seek diffrent sources of revenue and for when we examine our tax to GDP ratio ..it is low as compared to other developing countries..so in order to gain more revenue we have to generate more taxes...Ab smjh ayi??
