Economic injustice

Amidst Pakistan’s pursuit for the revival of an IMF bailout package earlier this year, Kristalina Georgieva, the managing director of IMF, advised the country to impose taxes on the wealthy and provide targeted subsidies to the poor. Indeed, this statement underscores that the tax system in Pakistan is regressive, favouring the wealthy to the detriment of the less fortunate. Pakistan has one of the lowest tax-to-GDP ratios in the world. This is due, primarily, to the non-payment of direct taxes by corporations and the wealthy.

The government collects the majority of its revenue through indirect taxes, which disproportionately burden the poor and middle classes. Ordinary people, who are making daily sacrifices due to inflation, are frustrated that corporations and the very wealthy don’t pay their fair share of taxes. It would not be wrong to say that, unfortunately, the poor often end up subsidizing the rich in this beloved country of ours.

Farid Ullah

Malakand