Misguided approach of tax collection
ISLAMABAD: The government frequently increases tax rates on salaries, goods and property to cover up for the deficits, claiming that a large number of people still evade taxes. The tax burden continues to fall on the salaried class. The Federal Board of Revenue (FBR) attempts to hide its incompetence for not being able to recover billions from telecom service providers, as until recently no software was available to assess the data collections of the cellular service providers. There is persistent increase in VAT and other taxes on service usage by the telecommunication service over the past few years, whereas the returns filed show the disparity between the amounts generated by the former and paid as tax to the FBR.
Huma Younus
Published in The Express Tribune, October 20th, 2017.
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