Documentation

This refers to the editorial ‘Record shortfall’ (March 20). The government has miserably failed in broadening the tax base. This displays the paucity of business acumen in the PTI economic team. The government seems to be going one step forward and two steps backward in an attempt to revive the economy. There is a simple way to unearth black money, document the economy and bring the informal sector into the tax net. The Rs5,000 note must be demonetised and withdrawn from circulation. People desirous of depositing the Rs5,000 note in exchange for smaller denomination not be given cash over the bank counter. Instead, the amount should be credited in the bank account of the person. After the account is credited, it can then be withdrawn in the usual way.

In this manner, the amount of hoarded money, mostly kept in the highest denomination notes, will be readily available from the amount deposited in each account. It is the easiest way to document the economy and go after tax evaders. The elimination of the higher denomination note will also combat corruption and money laundering.

Arif Majeed

Karachi