Taxes and transparency

Letter July 02, 2019
The government must ensure transparency with the money collected through tax

KARACHI: The tax regime is certainly given foremost priority by every country as it is a major source of revenue for the state. That is why every country puts in extra effort to maintain an image of transparency among its populace. The current tax regime in place in Pakistan has failed to facilitate the citizens. Along with the lack of amenities that are provided by the state, the tax mechanism is oppressing and crushing the lower and middle class families.

In the past few years, nothing has gone untaxed, whether through direct or indirect taxation. The government has introduced the increments in taxes to increase collection for the next year, and this will throw the average citizen in a dismal state.

Some of the reasons behind the low rates of tax payment are lack of awareness about the tax system, harassment of taxpayers, corruption in the administration, dependence on sales, income and custom taxes, and red-tapism in comparison to other countries. The government must ensure transparency with the money collected through tax amnesties, and earn the trust of the people.

Asif Murad Umrani

Published in The Express Tribune, July 2nd, 2019.

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