Government urged to plug massive tax evasion

Loses about Rs1,200 billion in revenue annually.

ISLAMABAD:

The government needs to do something about the massive tax leakages that cost it about Rs1,200 billion in revenue annually.

If the government’s failure to collect taxes continues, it will not be able to achieve its fiscal targets in the coming year, according to Dr Fatima Noor, finance teacher at Quaid-i-Azam University. Fatima urged the government to plug the tax leakages and bring more people into the tax net.

She was speaking at a seminar to discuss challenges and issues in 2011-2012 budget. The seminar was organised by South Asian Free Media Association (Safma) in association with South Asia Women Free Media Association (Sawma) here on Thursday.

Aftab Ahmed, Former Director General at Associated Press of Pakistan, was not so kind towards the budget. He said the budget made fool of the people, as there was nothing in it to allay the issues being faced by the common man. Sustainable Development Policy Institute Chief Executive Dr Abid Suleri said that the one third of the total budget has been allocated to defence, and for last four years Public Sector Development Program’s budget has decreased.

MNA Bushra Gohar of ANP, who is also a member of the finance committee, said, “We have mocked the entire nation through this budget.” She also criticised the government for failing to get taxes from agriculturists and real estates tycoons.

Pakistan Peoples Party MNA Yasmin Rehman defended the budget, saying that the government did its best to present a balanced budget. The government increased salaries by 15 per cent and the agriculture sector has also begun to show improvements.

She added that throughout the world, governments tend to continue the policies of their predecessors, but not so in Pakistan. Whenever a new government takes over, it changes the old government’s policies, effectively starting anew, she said.

Asrar Rauf, Additional Secretary Revenue Federal Board of Revenue, said the government collected 527 billion in direct taxes last year, which is good sign and shows that people are willing to give taxes.



Published in The Express Tribune, June 25^th, 2011.