Lakhari

Tax....... The Lifeline of economy (Muhammad Shahid Imran) Tax to GDP ratio indicates what percentage of Gross domestic product ratio is collected through taxes. Tax to GDP ratio is the simple measure of dividing Tax collected by the GDP (total income). It has no concern how you collect or spent your tax revenues. The worldwide table computed by Washington based heritage foundation shows that countries with high Tax to GDP ratio have the best living standards and are the developed ones. On the other hand countries with low tax to GDP ratio are the third world countries. Pakistan with 10 % or less tax to GDP ratio is in the league of notoriously failing and down troen countries along with   Afghanistan, Nigeria, Burma, Sudan and other African countries. Even the India has much better value with 17.7 %. Only exception is oil rich Arab countries with ratio around 2 % as they do not depend on taxes for state income. Some people argue that collecting taxes in Pakistan is...