It is not really light at the end of the tunnel; it is only a promise of the golden future time. Finance Minister Shaukat Tarin has suggested that those not paying taxes should be stripped of the right to vote and the right to represent the people in the legislatures i.e. tax evaders should be eliminated from the decision-making process. The minister has not spelt out how to implement the plan — whether the existing laws against tax evaders is sufficient or new ones should be introduced to deal with it. He has given only known figures relating to tax evasion like the tax-to-GDP ratio in Pakistan is at a mere 9% and needs to be increased to 20%.
The minister says that the government has collected necessary information such as details of bank accounts, and number of cars and houses owned by those avoiding taxes. This information will certainly help detect the tax thieves, thereby paving the way for stripping them of the right to franchise. But how far denying them the right to vote will help enhance the tax base is not certain. The government must devise a comprehensive plan to add to the number of taxpayers in the country. A sufficient amount of tax collection will help finance development and welfare plans besides generating employment opportunities. The increase in state revenues will result in bringing down prices of foodstuffs and of utility bills. The minister has assured businesses of the government’s full cooperation if they pay the taxes.
The government has made progress in enhancing tax collection given that it has collected Rs50.6 billion under the head of income tax in 2020 compared with Rs33.1 billion in the previous year. However, most people have no information as regards how much revenue the government has collected on increasing rates of petroleum products. The taxpayers have the right to know how their taxes are being spent. Defenders of the galloping inflation blame it on increasing international commodity and petrol prices. There is no point in arguing with these people.
Published in The Express Tribune, November 12th, 2021.
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