At what expense?

The government’s attempt to broaden tax base could seriously jolt the automotive industry. This appalling decision to disallow non-filers from purchasing vehicle could increase prices of used cars due to greater demand, while also forcing non-filers to look for alternatives in order to find a way out of the conundrum. The decision imposed by the government doesn’t guarantee increase in tax filers. Indeed, there is a strong correlation between prosperity and tax compliance. Unfortunately, when the government under delivers and doesn’t take responsibility for increased loadshedding or water scarcity, people become tax evaders as they perceive that their tax money is not being utilised for the welfare of society.

The automotive industry is considered to be the backbone of any manufacturing economy, providing millions of direct and indirect jobs. It also holds an eminent contribution to the national exchequer. Instead of hampering its growth, the government should reach out to non-filers and motivate them to become part of the tax net by simplifying tax filing system and create awareness of the benefits to the society in general with the tax amount collected. Tax collection at the expense of the auto industry is certainly an arrow aimed at the wrong direction.

Ali Hammad Jafri

Karachi