Tax evasion

Pakistan has a proper tax system that is being regulated in the country according to the Income Tax Ordinance, 2001, Sales Tax Act, 1990, Federal Excise Act, 2005, etc. However, tax evasion in the country is very high and big names are included in the list of non-taxpayers. Most of the time the government fails to collect taxes from the rich because of which the  government imposes a withholding tax to generate more revenue. Most recently, an increase in the property tax affected the real-estate market. This has decreased the market value of property, and dealers and builders are looking forward to move their business abroad.

Tax collection in the country is not properly organised. It is the duty of the government to make a foolproof tax system where every individual who is eligible must pay the tax. A large sample should be drawn during tax audit for the assessment of tax paid. Prompt collection of taxes help in improving the economy of the country as well as the standard of living of the people of the country.

Syed Naveed Askari

Karachi