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Friday April 19, 2024

Taxing non-filers

In order to increase revenue, the government has imposed 0.6 percent tax on non-filers of tax returns on all bank transactions. This appears to be a very good step because it will compel tax evaders, smugglers and other such worthy citizens to pay to the government what otherwise would have

By our correspondents
July 03, 2015
In order to increase revenue, the government has imposed 0.6 percent tax on non-filers of tax returns on all bank transactions. This appears to be a very good step because it will compel tax evaders, smugglers and other such worthy citizens to pay to the government what otherwise would have gone into their pockets.
But how will the government ensure its success in rural areas where bankers owe their jobs to feudal lords? Non-filers like land owners would end up escaping the tax net and by the time the FBR wakes up and starts its investigations these bank managers will have settled in some foreign land. Or they might have become powerful ministers and hire highly-paid lawyers to ensure that nothing happens to them.
Shakir Lakhani
Karachi