These steps will be crucial to re-invigorate growth and strengthen economic resilience. Keeping this in perspective, the Government’s broader economic strategy for the next few years will need to include: i. Increasing domestic resource mobilization to raise revenue/GDP ratio by at least 5 percentage points of GDP.
This is possible given the scope for enlargement of tax base, removal of exemptions and further strengthening of tax administration. The existing tax regime collects almost 68% of taxes from manufacturing and corporate sector, while agriculture and services sectors (aside from banks) are exempt and some segments of the economy are outside the tax net. BIS Review 33/2008  5  ii.