Tackling taxation

Over the years, the government has done nothing to promote economic growth in the country. Inflation rates and prices of basic commodities still seem to be on the rise. One of the reasons for this is that taxes are not paid by everyone. People working under the government are amongst the only salaried persons who pay taxes on a regular basis. Businessmen, landlords and factory owners use tax evasion techniques to avoid paying tax. There is a need to have tax reforms that address the population segments and economic sectors that slip by tax-free.
The tax base can increase in size and scope if the government grants greater sectorial equity with regard to income tax, meaningful reduction in the size of the informal sector and a reduction in the inequalities in the distribution of income. These changes will bring about a quantum jump in revenues – which, at present, seems to be a distant dream.
Muhammad Bilal
Islamabad