Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) President Muhammad Saleem Memon has said that the core reason behind Pakistan's narrow tax base and limited number of taxpayers is the lack of public and business community's trust in the utilisation of tax revenues by the government.
He said unless people were assured of transparent and effective use of taxes paid by them, there could be no significant improvement in the voluntary tax compliance.
In a statement, Memon remarked that despite collection of billions of rupees in taxes annually by various departments, the public and business sectors continued to suffer from the lack of basic civic amenities. Roads remain in poor condition, hospitals and schools are dilapidated and municipal services are constantly deteriorating.
He pointed out that numerous reports, including those from the Auditor General of Pakistan, had consistently revealed massive financial irregularities and mismanagement in public funds, but no meaningful accountability had been ensured.
He stressed that it was impossible to strengthen the tax system without restoring the confidence of business community. Currently, traders feel they are being forcefully taxed, yet their issues remain unresolved. He urged the federal and provincial governments to publish detailed annual expenditure reports alongside tax collection data, so that citizens could be aware of how and where their money was being spent.
He said if the government ensured the transparent use of public money, it would not only boost the confidence of taxpayers but would also motivate tax dodgers to become part of the formal economy.
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