Tax and spend

This letter refers to the news report, ‘Bill tabled in National Assembly to make life difficult for tax dodgers’ (December 19, 2024). I am hopeful that our tax collection shall rise by leaps and bounds via the several measures suggested in the report. It is hoped that as more and more sectors and individuals are brought into the tax net, the rates of income tax on salaried persons (like myself) drawing gross income/salary of Rs10 million per annum and below would be brought down. In recent times, the salaried class has endured terrible financial difficulties. Therefore, some reasonable relief should be accorded to them within the budgetary parameters and with IMF approval.

The NFC Award and 18th Amendment forces the federal government to transfer hundreds of billions of rupees to the provinces per annum. Is there any idea or working paper available as to what the federating units do with this money? Where is it applied? Are the funds used in productive endeavours? This is a very important consideration. Tax collection is important and it is equally important that tax monies are utilised effectively and with purpose by whichever tier of government is entrusted with it.

Abbas R Siddiqi

Lahore