Policy Critique: ‘Pakistan fails to tax their elite'

Wall Street Journal reported that Pakistan has failed to take drastic steps to raise taxes on the elite.


June 05, 2011

ISLAMABAD: A day after Pakistan unveiled its budget for the year beginning July 1, international scepticism and critiques started gaining momentum as the Wall Street Journal reported that Pakistan has failed to take drastic steps to raise taxes on the elite despite repeated calls by the US, International Monetary Fund (IMF) and other donors.  The Journal quoted: “[Pakistan] failed to take drastic steps to raise taxes on the country’s elite, a move that the US, the IMF and other donors say is needed to slash an unsustainable budget deficit.” The report went on to state, “But [Finance Minister Abdul Hafeez Sheikh] at the same time reduced the general sales tax to 16 per cent from 17 per cent and failed to bring in bold new measures to increase the state’s haul of income tax from the country’s wealthiest citizens.”  Wall Street Journal wrote: “Pakistan’s elite pay some of the lowest taxes anywhere in the world, with the country’s tax receipts amounting to only nine per cent of the gross domestic product.”





Published in The Express Tribune, June 5th, 2011.

COMMENTS (1)

Meekal Ahmed | 10 years ago | Reply This is factually correct. It is unfair to say that no effort was made to broaden the base. It would be fairer to say that much more could have been done.
Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ

E-Publications

Most Read