The incumbent government in its manifesto had promised that the tax net would be expanded
PESHAWAR: The government’s decision to ease the current lockdown was largely driven by the decrease in revenue collection during the current financial year; it is estimated to be 35% less than that of the previous year. This is a huge deficit, the effects of which will be surely felt in the next year’s budget.
The incumbent government in its manifesto had promised that the tax net would be expanded. Big businesses which avoid taxes would be dealt with, with an iron hand while affluent industrialists and the rich would be brought under the tax net. Those who have plundered public money would be forced to bring the money back to the country, thus creating opportunities for investment. Also, no corruption is to be tolerated in the country. All these claims were enthusiastically announced, aimed at increasing the revenue collection which would in turn help run the country. It is highly concerning that none of these claims have materialised so far. The avoidance of tax is still rampant in the country. Only the poor salaried class is compelled to pay their taxes while the rich industrialists go scot-free.
It is high time that the government took practical steps towards tax collection. The FBR must be revamped and empowered to collect taxes without any fear or favour while the tax collection and payment procedures should be made transparent and easy. All government departments must be strictly directed to achieve a certain amount of fixed revenue during a financial year and exports must be promoted while expenditures cut off. The unpopular and notorious practice of increasing electricity and gas prices to increase revenue collection must end.
M Sayyad Khan
Published in The Express Tribune, May 11th, 2020.
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