Too big to tax

For any country, the most important aspect of its administration is tax collection. The art of good tax collection is not about setting tax rates, but about finding the most effective and easy method to collect taxes. Over the past 50 years, the revenue authorities have struggled to collect taxes from several sectors such as agriculture, retail, real estate and tobacco.

Even after employing costly new technologies, the government has not been able to stop large-scale tax avoidance. The high GST on many products does not help as the costs are simply passed on to the consumer, while manufacturers and owners reap even higher profits.

Engr Shahryar Khan Baseer

Islamabad