KARACHI:
The International Monetary Fund (IMF) has urged the Pakistani government to tax the rich and subsidise the poor. The government should ensure that it acts upon IMF’s suggestions as it will support economic recovery as well as prevent a default-like situation in the future. For years, Pakistan has had policies targeted towards taxing the poor and subsidising those sectors, which are already enjoying high revenues.
This has resulted in an unequal distribution of income and widened the gap between the rich and the poor. The lower-income segments are paying more and more in taxes and being deprived of basic necessities. While the wealthy continue to enjoy their privileges. In light of this, the IMF has asked the government to tax the public and private sectors, which are making good money. It has also asked for a fairer distribution of pressures by moving subsidies towards the people who need them. This is particularly important as the lower-income groups and flood-affected regions require continuous support.
The IMF has also urged Pakistan to improve transparency and accountability by setting up an anti-corruption task force. This can help mitigate corruption within departments as well as improve tax collection and allocation of funds and resources. A fairer tax system promotes equality, justice, and economic stability in the country. The government should prioritise the well-being of the masses and the country instead of appeasing a few.
Sahil Dero
Larkana
Published in The Express Tribune, March 1st, 2023.
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