A country cannot hope to improve its abysmally low tax collection when its own legislators are tax evaders.
LAHORE: This refers to a recent investigative report titled “Representation without taxation” about tax evasion by key lawmakers including members of the federal cabinet. According to the data, 34 ministers out of 54 did not bother filing a tax return in 2011. Such revelations are no surprise in a country where tax evasion is rampant. A country cannot hope to improve its abysmally low tax collection when its own legislators are tax evaders and reluctant to file their tax returns. Perhaps, this is the reason that Pakistan has a very low tax-to-GDP ratio, a figure that has been stagnant at around nine per cent for almost a decade. On the other hand, there are countries economically less developed than Pakistan but with a much higher tax-to-GDP ratio.
The report shows that the rot starts at the top and unless the Federal Board of Revenue starts with MPs who evade taxes, there cannot be much hope.
Sajid Hussain
Published in The Express Tribune, December 14th, 2012.
