10 hours Ago
In the past year, the salaried class in Pakistan has surpassed several key sectors to become the third-largest taxpayer. However, there is a limit to how much the authorities can extract from those already pushing to their limits while turning a blind eye to the blue-eyed magnates. Astonishing disparities have recently emerged in investigations into the narrow tax base, strongly indicating that our tax machinery is in urgent need of reform.
It is inconceivable that, in a country with a population exceeding 240 million, only 12 individuals reported an income exceeding Rs 10 billion. Equally shocking is the fact that just 3,651 have a taxable income over Rs 100 million. On the other end of the spectrum, an astounding 2.
6 million declared zero taxable income during the current fiscal year. Even if this makes sense in a growing number of families nosediving below the poverty line, the biggest group of beneficiaries is, regrettably, those that can easily afford to pay the country their due share. For too long, those in power have purported to address these glaring issues, claiming to identify the so-called white elephants in the room.
There is no longer room for escaping through backchannels, we have been assured. Yet, this rhetoric stands in stark contrast to the reality faced by the FBR, which struggles to align with lofty aspirations laid out in initiatives aimed at economic revival through enhanced revenue streams. The overwhelming narrow tax net that leaves millions outside the tax system, forced only a small fraction to shoulder the burden.
While this might make do in the short run, it perpetuated a cycle of privilege, where the wealthiest navigate loopholes effortlessly while ordinary citizens are saddled with excessive tax obligations. This unsustainable disparity not only erodes public trust but also stifles economic growth, transforming tax compliance from a civic duty into a privilege reserved for the few. Indeed, a rigorous, cut-throat approach to dismantling the existing inefficiencies within the system is paramount.
Policymakers must prioritize cracking down on tax evasion, ensuring that every citizen contributes their fair share. Still, nothing can win the confidence of the masses than greater transparency in how tax revenues are spent. Demonstrating the direct benefits of taxation in terms of improved infrastructure, healthcare services, and education can convincingly illustrate why fulfilling their responsibilities is vital.
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