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Old Saturday, June 04, 2011
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shtanzeel shtanzeel is offline
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Quote:
Originally Posted by khanbaba512 View Post
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??
Agreed,
Even we can get rid of aid through good tax to gdp ratio. borrowing is always termed fruitful for development expenditure, because it augments tax to gdp ratio and enables us to generate good revenue(only if there is good tax to gdp ratio) and repay our debt.
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