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Business Recorder
20-05-2025
- Business
- Business Recorder
Pakistan's tax-to-GDP ratio declines in FY2024–25, says think tank
ISLAMABAD: An economic thinktank has claimed that the tax-to-gross domestic product (GDP) ratio of the Federal Board of Revenue (FBR) has declined from 11.6 percent in 2019–20 to 10.4 percent in 2024–25. According to a report - Decoding Pakistan's Budget Dynamics - issued by Economic Policy and Business Development on Monday, the 15–year period shows a significant increase in nominal GDP, with the most dramatic acceleration occurring in the 2019-20 to 2024–25 period. The tax-to-GDP ratio shows a modest improvement through 2019–20 but declined by 2020–25, highlighting persistent challenges in revenue mobilisation despite repeated reform efforts. In 2019–20, the tax-to-GDP ratio remained 13.2 percent, the report said. The revenue composition shows differential growth rates across the 15-year period. Tax revenues grew steadily through fiscal year 2009–10 to 2019–20 and accelerated in the 2019–20 to 2024–25 period. Direct taxes grew faster than indirect taxes over the full period, indicating a gradual shift toward income–based taxation. Non-tax revenue grew modestly from 2019–20 to 2024–25 but surged dramatically in the following five years, growing at an implied annual rate of over 40 per cent between2019–20 to 2024–25 period. Tax component analysis revealed that all major tax heads grew significantly over the 15-year period. Customs duties saw particularly rapid growth from 2014–15 to 2019–20, growing from Rs281 billion to Rs1,000 billion. The petroleum levy, while growing modestly in the earlier periods, accelerated extraordinarily in the 2019–20 to 2024–25 period, becoming a major revenue source by 2024–25. Income tax is the largest contributor to tax revenues, amounting to Rs5,454 billion in 2024–25. Provincial share in federal revenues increased substantially over the 15-year period, growing at an average annual rate of 17.7 per cent, exceeding the growth rate of the overall budget. As a percentage of gross revenue, provincial share increased from 32.6 per cent in 2009–10 to a peak of 48.5 per cent in 2019–20, before moderating to 41.8 per cent by 2024–25. The increase from 2009–10 to 2014–15 reflects the impact of the 7th NFC Award, which raised the provincial share of the divisible pool from 43.75 per cent to 57.5 per cent. The report concluded that despite tax revenues growing by 768 percent, the tax-to-GDP ratio remained largely stagnant around 10–11 per cent. The increasing reliance on SBP profits (1,567 per cent growth) indicates dangerous dependence on central bank financing rather than sustainable tax measures, it added. Copyright Business Recorder, 2025
Business Recorder
20-05-2025
- Business
- Business Recorder
Tax-to-GDP ratio declines in FY2024–25, says think tank
ISLAMABAD: An economic thinktank has claimed that the tax-to-gross domestic product (GDP) ratio of the Federal Board of Revenue (FBR) has declined from 11.6 percent in 2019–20 to 10.4 percent in 2024–25. According to a report - Decoding Pakistan's Budget Dynamics - issued by Economic Policy and Business Development on Monday, the 15–year period shows a significant increase in nominal GDP, with the most dramatic acceleration occurring in the 2019-20 to 2024–25 period. The tax-to-GDP ratio shows a modest improvement through 2019–20 but declined by 2020–25, highlighting persistent challenges in revenue mobilisation despite repeated reform efforts. In 2019–20, the tax-to-GDP ratio remained 13.2 percent, the report said. The revenue composition shows differential growth rates across the 15-year period. Tax revenues grew steadily through fiscal year 2009–10 to 2019–20 and accelerated in the 2019–20 to 2024–25 period. Direct taxes grew faster than indirect taxes over the full period, indicating a gradual shift toward income–based taxation. Non-tax revenue grew modestly from 2019–20 to 2024–25 but surged dramatically in the following five years, growing at an implied annual rate of over 40 per cent between2019–20 to 2024–25 period. Tax component analysis revealed that all major tax heads grew significantly over the 15-year period. Customs duties saw particularly rapid growth from 2014–15 to 2019–20, growing from Rs281 billion to Rs1,000 billion. The petroleum levy, while growing modestly in the earlier periods, accelerated extraordinarily in the 2019–20 to 2024–25 period, becoming a major revenue source by 2024–25. Income tax is the largest contributor to tax revenues, amounting to Rs5,454 billion in 2024–25. Provincial share in federal revenues increased substantially over the 15-year period, growing at an average annual rate of 17.7 per cent, exceeding the growth rate of the overall budget. As a percentage of gross revenue, provincial share increased from 32.6 per cent in 2009–10 to a peak of 48.5 per cent in 2019–20, before moderating to 41.8 per cent by 2024–25. The increase from 2009–10 to 2014–15 reflects the impact of the 7th NFC Award, which raised the provincial share of the divisible pool from 43.75 per cent to 57.5 per cent. The report concluded that despite tax revenues growing by 768 percent, the tax-to-GDP ratio remained largely stagnant around 10–11 per cent. The increasing reliance on SBP profits (1,567 per cent growth) indicates dangerous dependence on central bank financing rather than sustainable tax measures, it added. Copyright Business Recorder, 2025
Yahoo
09-05-2025
- Sport
- Yahoo
Mets' Carlos Mendoza Announces Jeff McNeil News After Leaving Diamondbacks Game
The New York Mets flipped the script on the Arizona Diamondbacks after a dormant offensive outing on Tuesday. They that game 5-1, but won 7-1 on Wednesday largely thanks to Juan Soto's two homers and Kodai Senga's six scoreless innings. However, the struggling second baseman/outfielder Jeff McNeil finally joined the party as well, hitting an RBI triple in the seventh inning. The 33-year-old is slashing .229/.282/.429 with one homer and five RBI this season. Advertisement McNeil tweaked his hamstring when running from second to third base on the triple and was taken out for Jose Azocar. New York manager Carlos Mendoza sounded off about the injury after the game, via SNY. Orlando Ramirez-USA TODAY Sports "He said he felt a cramp in his left hamstring, but he's fine," he said. "I was going to be aggressive with Azocar there, anyway. Trainers took a look at him, I just talked to him. He's fine. Nothing to worry about there." Azocar later scored on Francisco Lindor's double in the ninth. McNeil had just two hits in his last 17 at-bats before Wednesday's game. The 6-foot, 195-pounder's current form is a far cry from his 2022 campaign, when we won the batting title with a .326/.382/.454 slash line. Advertisement The Mets (24-14) won twice in their three-game set with the Diamondbacks (19-18), and are now 5-5 in their last 10 games. They're 2.5 games ahead of the Philadelphia Phillies for first place in the NL East as the latter club plays the Tampa Bay Rays on Wednesday night. Up next for New York is a home series vs. the Chicago Cubs. Related: Calls Mount for Mets to Make Major Jeff McNeil Move Amid Diamondbacks Game Related: Brandon Nimmo Breaks Silence After Injury in Mets' Loss to Diamondbacks
