To a large extent, our people consider the annual budget as the only way to solve economic problems, which is why the annual budget is very important in our homeland and is the focus of everyone’s attention. Experts on news channels, before and after the budget, discuss the extent to which the proposed budget will solve public problems and to what extent will it improve the country’s growth rate.
Pakistan has one of the lowest tax rates in the region. Tax-to-GDP ratio in Pakistan has slipped down to 9.6 percent, while the average tax-to-GDP ratio in the region ranges from 14 to 15 percent. It is worth mentioning here that lower tax rates limit government revenue, which directly affects the government’s resources.
Unfortunately, even those of our business sector who are competent to pay higher taxes avoid paying a penny. For example, the Retail industry is a huge sector of Pakistan but only pays some millions rupee taxes. Remember that unless we raise our tax rates, it will be impossible for any government to develop Pakistan and provide a balanced budget.
In this regard, the government should also make a clear distinction between taxpayers and non-payers and those who pay taxes should be given incentives at airports and government offices, which will indirectly boost the morale of non-payers.
One of the major reasons for non-payment of taxes in Pakistan is the attitude of tax collectors. The attitude of the FBR and other agencies towards the taxpayers is very inappropriate and sometimes even abusive and in view of all these things, the FBR needs to be reformed.
Unless the tax collection structure is improved, the tax rate in Pakistan cannot be improved. According to a report, there is an annual tax evasion of Rs 3,000 billion across the country and if this amount goes to the national exchequer, the budget deficit could be covered.
The use of technology to reform the tax system has become a matter of time. Bribery can be largely curbed by modernizing the tax system. Such examples of this are NADRA and passport offices which were considered a hotbed of bribery in the past but due to the use of modern technology, corruption has been largely curbed here.
In addition, students in schools and colleges can be taught the importance of paying their personal and business taxes. And this education needs to be disseminated not only through educational institutions but also through the media. We must always keep in mind that the tax you pay is the guarantee of a strong Pakistan.
